Gold Price News and Forecast: XAU/USD – risk rally on Friday causes gold to erase weekly gains
|Gold: US dollar strength takes a toll on the recovery moves below $1,700
Gold prices register mild losses of 0.05% on a day while trading near $1,683 during the early Monday. Although the recent risk aversion wave seems to flirt with the bullion buyers, the broad US dollar strength exerts a downside pressure on the safe-haven.
The fresh rush to risk-safety could be attributed to the surge in the coronavirus (COVID-19) related death figures from the US and the UK. Also supporting the yellow metal could be the People’s Bank of China’s (PBOC) rate cut.
Gold Forecast: Risk rally on Friday causes gold to erase weekly gains
After closing the previous week with strong gains, the troy ounce of the precious metal extended its rally and touched its highest level since November of 2012 at $1,747 on Tuesday but struggled to preserve its bullish momentum. The XAU/USD pair stayed relatively quiet on Wednesday and Thursday but came under strong bearish pressure on Friday to end the week virtually unchanged around the $1,690 handle.
On Thursday, US President Donald Trump presented guidelines to reopen the economy while highlighting that it will be a gradual process. "A national shutdown is not a sustainable long-term solution," Trump noted and unveiled the details of the three-phase process, reviving hopes of a return to normality.
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