Gold extends steep ascend and pressures $1900 barrier
Spot gold extends steep ascend into sixth straight day and posted new highest since Sep 2011 ($1888) on Thursday.
Global concerns about post-pandemic recovery that prompted investors into safety, were boosted by rising political tensions between the US and China.
Also, the dollar continues to trend lower and inflates gold bulls.
The yellow metal was up over 4% since Monday’s opening, on track for the biggest weekly rally since late March and also about to complete the fourth consecutive month in green.
Bulls pressure psychological $1900 barrier and also eye metal’s record high at $1920, with possible extension towards psychological $2000 level, not ruled out in current environment.
Overall global economic and political situation remains vulnerable and suggests that demand for safe-haven metal could be further boosted, if economic recovery continues to face headwinds and political tensions escalate.
Meanwhile, overbought daily/weekly studies warn of consolidative/corrective action, with dips to provide better opportunities to re-enter bullish market.
Res: 1888; 1900; 1920; 1950
Sup: 1872; 1863; 1850; 1839