Gold Price Analysis: XAU/USD bulls keep the reins with fresh record high above $1,975
- Gold prices carry Friday’s pullback from $1,960 to refresh record high to $1,988.02.
- The market’s rush to risk-safety amid downbeat US dollar, coronavirus woes keep the precious metal buyers hopeful.
- The month-start PMIs will decorate economic calendar, risk catalysts to keep the driver’s seat.
Gold prices remain on the front-foot while taking the bids near $1,982.56 during the early Monday morning in Asia. The yellow metal is on its run-up to $2,000 while keep refreshing the record high, the latest one being the intraday top of $1,988.02.
Risk aversion favors the bulls…
Be it the coronavirus (COVID-19) woes or the US Senators’ inability to roll out the much-awaited fiscal-package, risk catalysts keep fueling the yellow metal. Additionally, the US dollar’s fall to multi-week low and signals of further easy money from major global economies are also favoring the bullion’s safe-haven demand.
Australia’s Victoria has recently been given the “state of disaster” form after cases surged past-670 during the weekend. Pandemic figures from the US, India and Brazil have also been worrisome while the recent rise in numbers from China and Tokyo offers additional clues that the virus wave 2.0 is firming up its grip.
US policymakers failed to agree over the much-awaited fiscal package despite tough talks during the weekend. Not only the disagreement over the size of the aid plan but no extension of unemployment claim benefits despite the expiry also suggest hard days ahead. While pushing the Senators, Minneapolis Fed President Neel Kashkari recently said that the US Congress can well afford large sums for virus relief efforts.
Against this backdrop, S&P 500 Futures mark 0.30% loss to 3,260 while not following Friday’s upbeat performance of Wall Street. The same portrays the market’s risk-off mood and offers additional strength to the Gold prices.
Looking forward, the early-month activity numbers from China and the US may gain the major attention of the calendar-watchers but the qualitative catalysts will have a higher say in directing the gold’s near-term moves.
Technical analysis
Unless declining back below an ascending trend line from March, currently around $1,890, gold buyers are less likely to stop dreaming for $2,000 mark.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
