Gold Price Analysis: XAU/USD teasing a rectangle breakout, $1750 in sight
Gold prices (XAU/USD) are trading with sizeable gains in Monday’s thin Asian market conditions, trading near a new weekly high of $1740.74. The extension of last week’s rally in the yellow metal is mainly driven by the sell-off in the US dollar across the board, in the wake of US-China trade war relief and escalating US riots.
Friday’s US President Donald Trump’s speech on China’s forceful national security legislation on Hong Kong was softer-than-expected and did not target the trade relationship between the two countries. Therefore, the risk appetite returned and killed the haven demand for the greenback, which in turn benefitted gold.
Asia FX & Gold: Rioting in US cities highlights investors’ psychological struggle
Geopolitical risk remains supportive amid a plethora of bullish for gold themes while anarchy on the streets in the US could dent the nascent reopening recovery. But gold investors are also taking note that early reopening states are seeing a rebound in new cases. On May 30, California increased 3273 claims, the highest one day increase ever. Texas increased in 1714 cases. On the margin, the US three-day growth of infection numbers increased to 4.2%, the highest in a week (vs. 3.4% three-days ago).
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