Gold Price News and Forecast: XAU/USD down by $6 in Asia, weekly chart shows bullish trend exhaustion
|Gold Price Analysis: XAU/USD down by $6 in Asia, weekly chart shows bullish trend exhaustion
Gold, a safe-haven asset, is flashing red at press time even though the growth-linked currencies like the Aussie dollar are struggling to gain altitude.
The yellow metal is currently changing hands $1,728 per ounce, representing a 0.40% decline on the day, having hit a high of $1,735 in early Asia.
The pullback looks confounding if we take into account the lingering US-China concerns and heightened prospects of a prolonged economic downturn in the US, the world's largest economy.
Gold Price Forecast: Speculative interest keeps buying the dips
The FOMC released the Minutes of its latest meeting this week, and while the document didn’t bring shocking news, clearly indicated that policymakers are willing to use any available tool to support the economy through the pandemic, except negative rates. The BOE, on the other hand, had put them on the table. Meanwhile, the BOJ announced a 30 trillion yen program to support small and medium-sized companies.
Tensions between the US and China escalated as the week went by, denting the market’s sentiment. The US launched an investigation on the origins of COVID-19 backed, among others by Australia. It also menaced to take measures against the Chinese government’s decision to impose national security legislation on Hong Kong, triggering a response from US President Trump, who said that the country would “address that issue very strongly.”
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