Gold Price News and Forecast: Gold corrective decline to find support at $1837 – credit suisse
|Gold Price Analysis: XAU/USD slides to fresh six-week lows, around $1875 region
Gold continued losing ground through the early European session and dropped to fresh six-week lows, around the $1875 region in the last hour.
Concerns about the second round of coronavirus infections continued boosting the US dollar's status as the global reserve currency. This, in turn, was seen as one of the key factors that undermined the dollar-denominated commodity and some follow-through weakness for the third consecutive session on Wednesday.
Adding to this, the prevalent positive tone around the equity markets further dented the precious metal's safe-haven status. The downtick also marked the fourth day of a negative move in the previous five and could further be attributed to some technical selling on a sustained weakness below the $1900 horizontal support. Read more...
Gold: Corrective decline to find support at $1837 – Credit Suisse
Gold extends its decline below $1900 but the yellow metal weakness stays seen as a corrective by the Credit Suisse analyst team.
Key quotes: "Gold extends its consolidation/correction following the move to our base case objective of $2075/80 in August for a test of a cluster of flagged supports at $1897/37, which includes the 23.6% retracement of the rally from the 2018 low. We look for this to continue to hold to maintain the sideways range. Should weakness extend though, we would see scope for a deeper setback to $1765, potentially $1726."
"Above $1993 is needed for a fresh look at $2075. An eventual move above here stays looked for a resumption of the core bull trend with resistance seen next at $2175, Read Moor...then $2300." Read more..
Gold: Eyes on August lows of $1863 ahead of US PMIs and round two Powell
Gold (XAU/USD) extends sell-off into a third straight day on Wednesday, having settled at $1900 on Tuesday. Renewed US-China tensions and Fed's optimism are set to boost the greenback while the $1863 August low is eyed, FXStreet's Dhwani Mehta reports.
Key quotes: "The yellow metal remains undermined by the relentless haven demand for the US dollar seen across the board, as investors shun riskier assets amid coronavirus resurgence in Europe and the UK. US Federal Reserve (Fed) Chair Jerome Powell's testimony and solid US housing data collaborated with the US dollar surge. Powell said the US economy remains resilient throughout the crisis." Read more...
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