Trading news

Gold Prints Record High Prices Of $2,055 - What's Next?

Today in the early Asian trading session, the yellow metal prices continuing to climb after crossing the $2,000 per ounce level earlier in the week, having hit the high level of $2,055 on the day mainly due to the broad-based U.S. dollar on-going declining rally, triggered by the downbeat U.S. data. The uptick in U.S. stocks futures also undermined the safe-haven U.S. dollar and contributed to the bullion gains. However, the market trading sentiment was being supported by the expectations for a new coronavirus relief package. The reason behind the upbeat market sentiment could also be associated with the latest report that patient plasma reduces the COVID-19 death rate, which eventually becomes the key factor that kept the check on any additional gains in the yellow metal. Apart from this, the Sino-U.S. relations continued to worsen, which helped the safe-have metal hit a life-time high level. The yellow metal prices are currently trading at 2,051.31 and consolidating in the range between 2,034.97 - 2,054.08.

The ADP report suggested a rise of only 167,000 private-sector jobs in July while the manufacturing employment still depressed as per the ISM report. In the meantime, the broader services sector also seems depressed. However, this data added further burden on the broad-based U.S. dollar and contributed to the yellow-metal gains.

The ISM Non-Manufacturing Purchasing Managers' Index's headline figure increased to 58.1 points against a predicted fall at the data front. However, the employment part in America's services sector – consisting of around 70% of the economy – is suffering. The gauge dropped to 42.1, well below estimates of 51.1, under June's score of 43.1, and pointing to contraction."

As a result, the broad-based U.S. dollar failed to stop its losing streak and took the further offer on the day as the United States still faces damages from the coronavirus woes, witnessed by the downbeat U.S. data, which were released in the previous day. However, the U.S. dollar losses helped the gold prices stay higher as the price of gold is inversely related to the price of the U.S. dollar. Whereas, the U.S. Dollar Index that tracks the greenback against a basket of other currencies dropped to 92.823. 

At the US-China front, the long-lasting tussle between the two biggest economies continues to worsen day by day as China's ambassador to the U.S. recently clarified that the countries' relations are under "unprecedented strain" as well as he warned that a U.S. move to send ships to the South China Sea could raise further tensions. On the flip side, the U.S. secretary of state, Mike Pompeo, criticizes China and advises American citizens to avoid travel in China.

Whereas, the U.S. Congress policymakers recently showing a willingness to pass another round of aid that will include an additional $400-per-week unemployment payment. The House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnel discussed a compromise structure yesterday as being closer to the August vacation. While President Donald Trump clearly warned that if no significant progress is made tomorrow, he will not refrain from taking executive action.

While the risk-tone was also being supported by Trump's latest decision to reopen the country, Trump understood that the permanent lockdown is not working anymore to fighting COVID-19. This fresh optimism initially challenged the risk-off market sentiment and capped further upside in the gold prices. Looking forward, the market players will keep eyes on the risk catalysts like U.S. stimulus headlines and COVID-19 news for fresh direction ahead.



Daily Support and Resistance

S1 1947.21

S2 1991.29

S3 2014.86

Pivot Point 2035.37

R1 2058.94

R2 2079.45

R3 2123.53

The yellow metal gold prices extend trading bullish near the 2044 mark, and the buying sentiment still seems strong. On the downward side, the XAU/USD is anticipated to gain support around 2035, and bearish breakout of this mark can open additional capacity for selling till 2012. While the bullish breakout of 2050 can lead to gold prices unto 2090. On the way, the little resistance can be found around 2069. Buying sentiment seems solid today. Good luck! 

EagleFX Review

 

Thursday, 06 Aug, 2020 / 9:37

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source :

Trading news

 

Stocks lick wounds; pound tumbles on lockdown fears

  Selloff in equities eases but sentiment still subdued amid virus [...]

Posted on Tuesday, 22 Sep, 2020 / 9:56 under

DOW weighed down amid fresh lockdown worries – DOW JONES Market Outlook – 22/09/2020

Global equities tanked on fresh lockdown worries across Europe and possible [...]

Posted on Tuesday, 22 Sep, 2020 / 8:19 under

1.17 is the line in the sand for the Euro – EUR/USD Market Outlook – 22/09/2020

The bearish pressure on the Euro is mounting as price is currently trading [...]

Posted on Tuesday, 22 Sep, 2020 / 8:18 under