Home Forex News Gold (XAU/USD) Up 0.2% Silver (XAG/USD) Up 3.9% On Growing Safe-Haven Demand

Gold (XAU/USD) Up 0.2% Silver (XAG/USD) Up 3.9% On Growing Safe-Haven Demand

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  • Economic Crisis Concerns
  • Growing Safe Haven Demand
  • Low Industrial Metal Demand

Gold (XAU/USD) and Silver (XAG/USD) are edging higher amidst surging demand for safe-haven in response to looming economic recession. Investors are increasingly fleeing risker assets amidst growing concerns of a second wave of coronavirus infections around the world.

Gold-Silver Price Gains

Gold continued to trade above the $1,700 an ounce level capping out what is turning out to be an impressive year for the precious metal. The precious metal is up by more than 10% for the year benefiting from investors betting on it as a safe haven amidst the economic crises triggered by the COVID-19 pandemic.

Time                            : 13-05-2020

Pivot                           : $1703.52

Technical View           : Long Above $1706.65

Target                         : $1709.79, $1710.75 and $1716.79

Comments                  : Weak Bullish

Last Price                    : $1704.14

Silver has also been on an impressive run since the start of the second quarter, rallying by more than 20% after coming under pressure in the first quarter. The semi-precious metal is up by more than 20% in recent months having already clocked highs of $15.8.

However silver remains susceptible to further declines given the reduced industrial demand for the semi-precious metal. The lockdowns triggered by COVID-19 pandemic has triggered industrial shutdowns around the world conversely affecting demand for the industrial metal.

Time                            : 13-05-2020

Pivot                           : $15.49

Technical View           : Long Above 15.69

Target                         : $15.79 and $15.89

Comments                  : Weak Bullish

Last Price                    : $15.54

Strengthened Dollar

Gold and silver prices could have been much higher had they not suffered the effects of a strengthened U.S dollar. The greenback has continued to strengthen against the basket of other major currencies as investors continue to bet on it as a safe-haven in times of crisis.

Gains on the greenback have come at the backdrop of disappointing economic data in the U.S that continues to fuel concerns about the health of the world’s largest economy. The COVID-19 pandemic has already triggered record unemployment rates with more than 30 million people in the U.S applying for unemployment benefits.

Depending on how the US. Dollar will trade amidst the weak economic data that continue to hit the wire gold and silver prices could fluctuate significantly.

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