Gold price gives back some early gains from the Asian trading session as the price hovers close to 2020 highs. The gold price had a volatile session on Friday, as investors dumped equities amid the rising fears of a second coronavirus wave. Gold followed in early U.S. morning session the sell-off and dropped down to 1,746 the weekly lows, but managed to rebound by the end of the session above the 1,600 mark.
Investors await the Fed’s Open Market Committee Minutes for fresh clues on the state of the economy and any additional monetary measures that needed to support the economy. A new stimulus package will be gold positive.
The Gold ETF holdings stand close to record highs as holdings at SPDR Gold Shares rose to 1,178.90 tonnes on Friday. It seems like it is a matter of time until the gold price will hit new yearly highs.
The gold to silver ratio consolidates around 99.15 the last two weeks after it breached below the 100-day moving average.
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Gold price is 0.02% lower at 1,770 just seven points below the yearly and eight-year highs. The technical picture is clearly bullish and the pullbacks considered as a buying opportunity. A break above the yearly highs might lead to a sharp rally above the 1,800 mark.
On the downside, the first support for gold price stands at 1,767 the daily low, while more buying interest might emerge at 1,722 the 50-day moving average. In case the bears continue the selling pressure, then the next support area stands at 1,692 the low from June 9th. Strong support will be met at 1,670, the 100-day moving average.
On the flip side, the gold price will face the first resistance at 1,775 the daily top. If the gold price breaks above 1,775, then the next resistance would be met at 1,777 the yearly high from June 24th. A credible break above might challenge the 1,800 round figure.
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