- 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.
Currencylive.com is a news site only and not a currency trading platform. Currencylive.com is a site operated by Wise US Inc ("We", "Us"), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of Wise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.
