Gold slips as dollar firms, virus fears limit losses
· Gold prices edged lower on Monday due to a stronger U.S. dollar, but worries over a surge in coronavirus cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.
· Spot gold was down 0.1% at $1,807.80 per ounce by 0455 GMT. U.S. gold futures were steady at $1,809.70.
“There are technical indications that the U.S. dollar could strengthen and that might be why we are seeing traders in the gold market taking the lid off the price at the moment,” said Michael McCarthy, chief strategist at CMC Markets.
“There’s no doubt that we are in the medium-term uptrend for gold. It appears that there’s a segment of the investment community that remains unconvinced about the V shaped recovery, and they’re buying gold.”
· The dollar index rose 0.2% against its rivals, making gold more expensive for holders of other currencies.
· Coronavirus cases continue to surge in the United States, adding to concerns over the recovery of the global economy from the effects of the pandemic, which has so far infected more than 14 million people worldwide.
· Underscoring the impact of the virus, Japan’s exports plunged 26.2% in June from a year earlier, Ministry of Finance data showed on Monday.
· Markets are eyeing the European Union Summit for trading cues, with leaders at an impasse over carving up a proposed 750 billion euro ($858.30 billion) recovery fund to revive economies.
“Gold markets are also becoming addicted to large stimulus measures from central banks to provide excess liquidity and which have been driving expectations,” Phillip Futures analysts said in a note. “Central banks may disappoint gold investors if the bankers perceive signs of inflation or economic progress.”
· Speculators reduced their bullish positions in COMEX gold and increased them in silver contracts in the week to July 14.
· Palladium almost unchanged at $2,024.40 per ounce, while platinum fell 0.2% to $836.58 and silver eased 0.1% to $19.29.
Gold: Set to hit a record high in the next 6 to 9 months – Citibank
Analysts at Citigroup cite four key reasons behind gold’s next leg higher to a record high in the coming months.
Key quotes
“The price of gold will hit a record high in the next 6 to 9 months.”
“Assess a 30% probability it would go above $2,000 in the next 3-5 months.”
Citing “loose monetary policy, low real yields, record ETF inflows and increased gold asset allocation.”
"Nominal gold prices have already posted fresh records in every other G-10 and major EM currency this year, so we believe it is only a matter of time for fresh gold-USD highs."
See gold averaging $1,750 this year, 1,965 next year.
Sustained deflation shock and major hawkish turn from the Fed could limit the upside.
This is, however, highly unlikely in 2020.”
Gold Long Chance after Break Out
Gold Trade Setup / Analysis
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Please follow the analysis very carefully and every detail of the chart means a lot. And always entry depends on many reasons carefully studied
Always enter into deals when there are more than 5 reasons
combined
Waiting For Main Break Out At 1812.5 with 4h Candle at least
Key Technical /
1) Strong Supply
2) Volume Profile Confirmation
3) Pattern / Channel
4) Fibo Break Out at 1812.5
5) Turn level
6) Day High / weekly high
Analysis Target 's after Break Out 1812.5
1) 1825
2) 1840
Main Supply / Demand
1) 1811 / 1813
2) 1790 area
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