- Trade wars between the US and China to affect gold prices
- Dollar performance blamed over trends
- Europe considering easing lockdowns
Many investors expected the recent risk-off sentiment to cause a massive impact on gold prices (XAU/USD). That doesn’t seem to be the case considering that the trend remains to be the weak bearish. Analysts have been checking out the prices, and they can’t help but notice how they persistently remain more or less unchanged. It was in the Asian session that the metal was attributed to a quote of about $1,687.
Market analysts have been trying to find out the cause of the current gold trends. At first, they seemed more inclined to linking the matter to the US-China trade war. However, with time they seem to be taking a pretty different persistence. According to them, the pullback performance associated with the US dollar is to blame.
The dollar has been moving through a rough patch after the outbreak of the deadly COVID-19 pandemic that continues to terrorize the world. It is a pandemic that has brought activities in major cities and companies to a sudden halt. Joblessness has become the order of the day, and suffering and frustration have characterized the lives of many citizens.
Technical View :Short below $1688.38
Target :$1680.88, next target levels $1671.59, $1655.74 and $1630.71
Comments :Weak Bearish sentiment
Last Price :$1686.80
The US government has tried to intervene in several ways, one of them being the introduction of lockdowns across the country. However, the citizens complained about some difficult financial times. The government considered the plans, and they have been working until now. It was the releases of the stimulus checks to the accounts of the citizens to help them weather through the coronavirus storm and its effects.
One would have thought of the COVID pandemic as then worst nightmare, but there is a great need to think twice about that. It was just recently that President Trump presented new challenges to the market. He is said to have fired some trade-war shots towards China. In retaliation, the media in China retaliated by uttering highly venomous words to Mike Pompeo, who happens to be the US Secretary of State.
It is a difficult state of affairs around the globe. Europe may soon be easing lockdowns; a matter said to impact the gold prices. According to reports, the metal is set for a weekly fall.
Analysts say that the central banks can enjoy the freedom to channel money into the markets as much as they want. However, they need to realize that many people around the globe want to protect their wealth. That is sure to send the gold prices rising higher.