Gold price trades higher for one more day making fresh eight-year highs as the demand for safe-haven assets rise amid rising concerns for the second wave of new coronavirus infections that might halt the recovery of the global economy. Doctor Fauci, of the National Institute of Allergy and Infectious Diseases, in the USA, testified yesterday that cases could soar to 100,000 a day in the USA.
Better economic data from the USA yesterday and Europe and China today failed to halt the upward momentum, as the path is clearly pointing to an attempt of the 1,800 mark. The manufacturing PMI’s data from Europe continue the rebound for second straight month pointing to a fast recovery, which might put pressure on the gold price.
The economic data has already supported a strong move in equities while if the data continues to improve would place a halt to the gold upside trend. In that case, we could experience a sharp correction down to 1,742.
Gold Price Technical Levels to Watch
Gold price is 0.03% higher at 1,782, having hit earlier on the day the 1,784 mark. Bulls are now targeting the 1,800 mark, which might prove a strong resistance amid an improvement in economic data. A rejection at that level might be the start of a correction down to the upper bound of the recent consolidation area at 1,742.
On the upside, the gold price will face the first resistance at 1,784 the daily top. If the gold price breaks above 1,784, then the next resistance would be met at 1,786 the high from yesterday. If gold price breaks above, then bulls would challenge the 1,800 round figure.
On the contrary, immediate support for gold stands at 1,780 the daily low, while more buying interest might emerge at 1,766 the low from yesterday trading session. If the bears continue the selling pressure, then the next support area stands at 1,747 the low from June 26.