Safe-haven gold scaled an all-time peak on Wednesday, extending a record run above the $2,000 mark on a weaker dollar and bets for more stimulus measures to revive a pandemic-ravaged economy. The rally was driven by a belief that gold will hold its value better than other assets as fallout from COVID-19 ripples through the global economy.
Central bank stimulus has pushed inflation-adjusted U.S. bond yields to record lows, making non-yielding gold more attractive, and the dollar has weakened sharply, making bullion cheaper for buyers with other currencies. U.S. manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections. The top Democrats in the U.S. Congress and White House negotiators said they had made progress in talks on a new coronavirus relief bill. The U.S. economy, battered by resurgence in the spread of COVID-19, needs increased government spending to tide over households and businesses and broader use of masks to better control the virus, U.S. central bankers said.
TREND : BULLISH
Time : 05/08/2020
Pivot : 2002.91
Technical View : LONG ABOVE 2021.72
Target : 2040.53, 2067.69, 2104.34