Home Gold News The Price of Gold Continues to be Supported by Ongoing weakness in...

The Price of Gold Continues to be Supported by Ongoing weakness in the Dollar

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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

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