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Gold Pulls Back from Record Highs, as U.S Jobless Claims Falls

By:
Olumide Adesina
Published: Jul 9, 2020, 14:00 UTC

Gold prices pulled back from its highs on Thursday at the opening of U.S trading session

Gold

As data obtained from the U.S. Labor Department showed the number of Americans applying for Jobless claims plunged to 1.314 million in the period ending July 3, triggering a positive signal that the labor market is recovering amidst the COVID-19 pandemic onslaught.

Spot gold was little changed at $1,811 per ounce at 2. 06GMT. it earlier soared to its highest point since September 2011 at $1,817.71 yesterday.

“The combination of global central bank easing, geopolitical risks, the persisting pandemic impact, and global recession could continue to push gold prices higher in the medium term,” said Bank of China International analyst Xiao Fu.

Gold is still blinking bright as regions around the world’s largest economy showing health crisis and a dysfunctional system in its political landscape with the outbreak of racial division, making the execution of an efficient and wide-sweeping health care policy almost impossible in America.

Though the race by many leading U.S drug makers in producing the COVID-19 vaccine, in the present condition, it’s proving very difficult for the world’s largest economy to curb the onslaught of COVID-19 than other emerged economies.

In addition, the yellow metal still possesses bullish sentiment, with the present financial market volatility on-going around the world, especially in the emerged markets like the United States, Western Europe, China, coupled with the resurgence of COVID-19 caseloads and the stern warning made by the World Health Organization, that reinstatement of lockdown procedures might take effect in some geopolitical zones around the world.

However, in the short term, the Gold spot price will experience some profit-taking, especially under the $1,815 resistance levels, triggered by the greenback strengthening, as global investors rush into U.S money markets, thereby pushing the price of gold sport around the $1805 in the near term.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. He is a Member of the Chartered Financial Analyst Society.

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