Another day another record for gold price as the bulls continues to bid any pullback in the precious metal. Gold price approach fast the 2,000 mark in early American trading session as the USD gives up early gains.
Despite the recent stronger than expected economic data from the USA investors continue to run for safety at gold. The United States Factory Orders registered in at 6.2%, beating the forecasts of 5% in June. The ISM – New York Business Conditions Index climbed to 53.5 in July smashing the expectations of 15.8. The June reading was at 39.5. The IBD/TIPP Economic Optimism jumped to 46.8 in August from 44 in July.
Meanwhile, Silver price continues to outperform as it is adding 5.86% at 25.70. The gold to silver ratio approaching the recent lows and trades 3.75% lower at 78.18.
The speculation for a new relief package from the U.S. administration and the Feds commitment to historic low levels is the primary driver of the gold rally.
Gold Price Technical Analysis
Gold price is 0.97% higher at 1,996, having hit a few minutes ago the record highs at 2,000.67. What can happen at record highs now is a fast break above the 2,000 mark that might drive gold price at 2,020. There is also a possibility of a rapid correction if the gold price failed to settle today above the 2,000 mark.
The first support zone stands at 1,937 the low from July 30. If the bears break below that support, then the next target would be 1,882 the low from July 24.