- Surging Risk Sentiments
- U.S Coronavirus Infection Jump
- Copper Sell-Off
Gold (XAU/USD) come under pressure on its way to the $1800 level as an unexpected dollar rally curtailed further upside action. Copper (HG/USD) also came under pressure, edging lower as the dollar strengthened across the board as the U.S recorded its biggest jump in coronavirus infections.
Gold prices had initially spiked to 8-year highs on receiving a boost from weakness in the dollar. However, the precious metal has pulled lower on dollar strength and profit-taking, after days of blockbuster moves.
Time : 06-25-2020
Pivot : $1765.19
Technical View : Long Above $1771.35
Target : $1777.44 next 2 targets are $1790.94, and $1808.55
Comments : Weak Bullish
Last Price : $1765.75
The precious metal has been on an impressive run, rallying by more than 10% since the start of the year. Its blockbuster move has come on the heels of investors scampering for safety in safe – haven amidst growing concerns about economic recessions following the COVID-19 pandemic.
Analysts at Bank of America believe that the bullion’s bullish momentum is likely to persist throughout the year amidst pullbacks as the one experienced on Wednesday. The analysts remain bullish on the metal hitting record highs before the end of the year on breaking through key resistance levels at $1800 and $1900 an ounce.
A resurgent t dollar stands in the way of the precious metal rallying to record highs. The dollar has turned bullish amidst a spike in risk sentiments in the market. More than half of U.S states reporting a spike in new coronavirus infections have forced investors to turn to the greenback given its safe-haven status.
Copper, on the other hand, has found the going tough after a recent spike to five-month highs. Price have continued to edge lower as fears that a second wave of coronavirus infections could affect the metals demand continue to influence traders’ sentiments.
Time : 06-25-2020
Pivot : $2.6384
Technical View : Long Above $2.6439
Target : $2.6645 next 2 targets are $2.6976, and $2.7207
Comments : Weak Bearish to Neutral
Last Price : $2.6540
Technical View : Short Below $2.6359
Target : $2.6043 next 2 targets are $2.5822, and $2.5481
The metal had initially spiked to five-month high as demand edged higher with the opening of factories in China, the world’s largest importer. However, with China also struggling with renewed cases of infection, sentiments on the metal is slowly turning bearish.
Copper prices remain on the defensive as the dollar continues to strengthen, given the renewed demand for safe-havens.