Gold price continues higher for the third consecutive session reaching the highest level in almost two weeks. A weaker dollar is the main force that drives the gold price to a higher level in the last days. The US dollar trades to the lowest level since April 30, 2018, after the Fed shifted its policy framework.
Jerome Powell said that Federal Reserve would allow inflation to rise above the 2% target, pointing to historic low-interest rates for years and not for months. The news shifted investors attention back to gold after the recent correction from the all-time highs.
The recent uptrend in gold price followed the correction from record highs, after the rally from March lows as investors turn to safe-haven assets amid the coronavirus crisis.
Some weak economic data the previous week from the USA increase investors concerns about the economic recovery, which points to a slower than expected return to pre-coronavirus levels.
Silver price also attracts bids today, adding 2.59% at $28.76.
Gold Price Analysis
Gold price is 1.16% higher at 1,990, as the precious metal resumes the uptrend and now targets a break above the 2,000 mark. The correction from record highs drove gold price out of the overbought area, and the technical picture is clearly bullish.
Gold resistance stands at 1,992 the daily top. Above that, the next obstacle awaits at 2,008 the high from August 19. Next supply zone is at 2,029 the top from August 11.
On the contrary, initial support for the gold is at 1,965 the daily low. The next level bears would target 1,920 the low from August 28. A break below the 50-day SMA at 1,892 might cancel the bullish momentum.
Gold Price Daily Chart