- Investors buying every dip in the price
- US dollar weakness is seen as the primary catalyst
- Geopolitical concerns and falling US yields help
Investors are pouring money in gold in every dip and helped it to record fresh all-time highs against the US dollar. The XAU/USD, gold-dollar pair, is trading near 2040 dollars.
Buyers are now considering 2050 as the immediate target and bought into the pair around the support region of 2010 dollars; after it retraced from the previous high of 2031.20 dollars.
The yellow metal’s fundamental appeal stems from the crumbling US Treasury yields – facing worries of unprecedented debt expansion, and doubts about the US economic recovery after the coronavirus pandemic triggered severe GDP contraction.
The US dollar index was seen trading today down 0.27% on a daily basis, near 93.06 – a fresh monthly low.
Expectations that the US Congress can dish out a fiscal stimulus plan is helping the bulls in the precious metal gold. The metal will now await the US ADP jobs data today for clues on the official Non-Farm Payrolls due on Friday. A dip in jobs growth can escalate US economic concerns, helping gold to post new highs at the expense of the dollar.