Gold flat as coronavirus fears offset firmer dollar
· Gold prices were little changed on Friday as fears of a second wave of coronavirus infections buoyed demand for the safe-haven asset, but a stronger U.S. dollar and hopes of a swift economic recovery limited the upside.
· Spot gold was flat at $1,723.19 per ounce, as of 0048 GMT. Bullion has fallen 0.4% this week.
· U.S. gold futures edged 0.1% higher to $1,731.90 per ounce.
· Mainland China reported 32 new coronavirus cases as of the end of June 18, 25 of which were reported in the capital city Beijing, China’s National Health Commission said on Friday.
· A surge in new infections in several U.S. states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder of the risks of reopening economic activity before a vaccine has been developed.
· Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to levels seen before the pandemic.
· Gold is often used as a safe store of value during times of political and financial uncertainty.
· Denting gold’s appeal, the dollar index rose 0.1% and hovered near a two-week high hit in the previous session.
· On Thursday, data showed initial claims for state unemployment benefits in the United States dropped for the 11th straight week, but the pace of U.S. labor market recovery appeared to have stalled.
· U.S. President Donald Trump on Thursday renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing.
· KITCO | Gold weaker bullish spark needed
Technically, August gold futures bulls still have the firm overall near-term technical advantage as trading is in a choppy and sideways pattern at higher levels. Longer term, such action could be storing energy for another leg up in prices in the coming weeks or months. Gold bulls' next upside near-term price objective is to produce a close above solid technical resistance at $1,761.00. Bears' next near-term downside price objective is pushing prices below solid technical support at $1,700.00. First resistance is seen at $1,743.80 and then at $1,750.00. First support is seen at $1,717.30 and then at this week’s low of $1,706.20. Wyckoff's Market Rating:7.0
· Palladium dropped 1.1% to $1,903.30 per ounce, silver fell 0.7% to $17.38, while platinum gained 0.1% to $805.34.
Reference: CNBC, Kitco
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