Technically Gold Remains in its Uptrend

#gold #silver #virus #China #uptrend #inflation


Gold prices eased Thursday on a stronger USD, though concerns over rising C-19 coronavirus cases and US-China tensions is keeping bullion close to a 9-yr high.

Spot gold was down 0.3% to 1,805.62oz by 0705 GMT, just 12 shy of its highest since September 2011 hit last week. US gold futures fell 0.3% to 1,807.90.

.DXY rose 0.1% Vs its peers, making gold more expensive for holders of other currencies.

Data out of China showed its economy grew 3.2% in Q-2 from a year earlier, while retail sales unexpectedly fell again last month, pointing to weak consumer demand.

Asset markets are trading in reasonably tight correlations, so the gold price is tracking behavior in broader financial markets.

From a technical point of view, support at 1,800 is holding well and indicates that price is committed to its uptrend as is silver.

Safe-haven gold has risen 20% YTD benefiting from low interest rates and widespread aid/relief/stimulus as it’s seen as a hedge against inflation and currency debasement, market participants are divided on the outlook for inflation.

Investor focus now shifts to the ECB’s policy decision due at 1145 GMT.

Elsewhere, palladium dropped 0.5% to 1,971.58oz, platinum lost 0.5% to 827.83 and silver slipped 1% to 19.18.

Have a healthy day, Keep the Faith!