Gold hits 8 year high

2 July, 2020

The price of Gold has pulled back in today’s trading session after reaching an 8 year high as a rise in coronavirus cases sparked concerns over the economic recovery from the devastating effects of the virus and boosted demand for safe-havens.

Just when things seemed to be getting back to some sense of normality in countries such as the US, where several states began reopening for business which included retail shops and restaurants, the number of coronavirus infections once again spiked. This raise fears of a 2nd round of the deadly outbreak which would bring the fragile economic recovery to a halt and in turn boosted demand for gold.

"Uncertainty about the coronavirus, particularly in the U.S., which could put the brakes on an economic recovery, and the ultra-loose monetary policy of central banks are giving support to gold," said Commerzbank analyst Daniel Briesemann.

The gold price was looking to break through the phycological $1800 barrier before it was brought to a halt after strong economic data from the US and a potential vaccine for the coronavirus boosted demand for the U.S. dollar which makes holding gold more expensive for other currency holders.

U.S. manufacturing figures hit the market yesterday at their highest levels in more than a year  yesterday and if such positive data as this continues over the coming weeks we may see the precious metal unable to make any further solid progress.

A coronavirus vaccine developed by German biotech firm BioNTech and US pharmaceutical giant Pfizer has shown potential and was seen to be fairly positive in early-stage human trials.

“A renewed sense of optimism over the U.S. economy recovering quicker than expected may fuel the risk-on mood, ultimately denting appetite for safe-haven assets including gold,” said FXTM analyst Lukman Otunuga.


Source  
Gold looks towards $20009 Jul, 2020  

The gold price finally broke through the elusive and phycological $1,800 mark, and so far today, buying interest has kept it above this critical level, and now...

New virus outbreak to diminish oil demand7 Jul, 2020  

The oil price continues to hover around a 4 month high in today's trading session which has largely been driven by the production cuts agreed to by...

Dollar may enter a bear market9 Jun, 2020  

The US dollar has entered into a period of uncertainty after Friday after the release of job figures from the US gave hope that the economy might...


Gold rises for a third straight day as US riots grow1 Jun, 2020  

The gold price is rallying for a third straight day in today's trading session on the back of US dollar weakness as well riots in major U.S. cities caused by the death...

Oil to suffer long term1 Jun, 2020  

The oil price is down more than 1 percent in today's trading session as the market digested the news on bigger than expected oil inventories in the US...

Is the gold price being manipulated?26 May, 2020  

The lack of volatility or growth in the gold price recently has left many in the market scratching their heads as to why the precious metal has't rallied considering...


Global oil demand has yet to peak, says IEA head26 May, 2020  

During the press conference, the head of the International Energy Agency (IEA) gave a very encouraging comment on the recovery of the oil market...

US shale may halt oil rally19 May, 2020  

The oil price has hit some resistance in today's trading session, taking a pause from its remarkable recovery as major cutbacks from the world's leading oil producers...

Oil: Saudi Arabia sharply reduced exports15 May, 2020  

Saudi Arabia continues to push global oil prices upward, cutting production and exports to a minimum of almost 20 years. Saudi Aramco announced...