Gold and silver slipped in early trade today as traders booked profit at higher levels but the losses were capped due to worries over fast spreading coronavirus pandemic and rising tension between US and China. Expectations of further stimulus and heightening geopolitical tensions continue to bolster safe-haven demand. Non-yielding gold has surged 24% this year, underpinned by lower interest rates and widespread stimulus measures from major central banks. The dollar slid to 22-month lows against a basket of currencies.
A weaker dollar usually spurs buying of commodities priced in the greenback, like gold & oil, because they become cheaper for holders of other currencies. U.S. Senate Republicans plan to propose another round of direct payments to Americans in the next coronavirus relief bill, a senior aide said on Thursday. The number of Americans filing for unemployment benefits unexpectedly rose to 1.416 million last week for the first time in nearly four months, suggesting U.S. economic recovery is stalling amid a resurgence in COVID-19.
TREND : BULLISH
Time : 24/07/2020
Pivot : 1885.19
Technical View : LONG ABOVE 1891.64
Target : 1898.10, 1903.01, 1915.96, 1933.58