Gold Looks Set To Keep Its Shine, Rampaging Virus Shows No RetreatGold ended the previous week shining all the way to a sixth-straight winning week over the resurging COVID-19 virus, restricting human productivity and high uncertainty in the world’s fragile economy.
Just yesterday the world’s largest economy death toll from COVID-19 related cases exceeded 140,000 as caseloads continued to climb in 43 out of 50 states over the past several days.
Since the beginning of June, Americans have witnessed a resurgence in new COVID-19 cases and now, about six weeks later, the death toll has been on record highs.
Americans are losing about five thousand individuals to the deadly virus every week. While its neighbor Canada has reported a total death toll of about nine thousand since the rampaging virus began its onslaught on global economies.
The yellow metal’s bullish momentum has been fueled recently by gold traders and global investors expecting monetary and fiscal stakeholders to start a new round of stimulus packages around major emerging and emerging markets.
The real-time barometer for bullion prices Spot gold, gained 0.8%, to close the week at $1,812.
The breakout for the spot yellow metal is around the strong resistance level of $1,812 as gold traders set their eyes on the $1825 levels on the mid-term with the rampaging virus distorting economic activities, if the caseloads, especially in the world’s largest economy, do not recede, Gold bulls may extend the price to $1,850 level.
However if macros, especially the potential COVID-19 vaccine produce more exciting news in the coming days, gold could witness a breakdown of its support level around the $1,785-$1790 range, which could push the price as low at $1,735 price level.
New stimulus packages around the world from global central banks in protecting global economies from the fallout of the COVID-19 pandemic, will continue to keep the safe-haven asset above the $1,800 levels.