In an editorial article published by Forbes, contributor Naeem Aslam cited five key reasons that are likely to drive Gold prices higher in the coming days.
At the press time, the yellow metal posts small losses around 1760 levels, trading with a bearish bias while it holds below the 100-hourly Simple Moving Average. The spot is likely to chart a symmetrical triangle breakdown on the hourly chart.
Key five factors for Gold’s upside
“Coronavirus: Second Wave: Investors are largely risk-averse due to the threats of coronavirus second wave.
Possible new tariffs on Europe: Trump is weighing new tariffs on $3.1 billion of exports from the UK, Spain, France, and Germany. If tensions continue to rise on this issue and Trump doesn’t back off from his stance, investors are likely to steer away from riskier assets.
China-US trade war: China is not a country that is going to sit on its hand and let the Trump administration to bully it. The Phase-one US-China trade deal has become immensely fragile due to coronavirus.
US Unemployment Claims: The weekly jobless claims data continue to paint a very dull picture for the US labor market. Sadly, with the regional shutdown of stores in the US, it seems the minor recovery we have seen so far could be under a significant threat as well.
Earnings season: There was some hope for improvement as the economies began to re-open. But the emergence of the second corona wave is likely to trigger another cautionary note from US companies, and investors are not going to like it.”
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