Gold spiked to All-Time Highs, breaking above ($1920.111) during the early European session, albeit quickly retreated a bit thereafter.
There are still high concerns within in the US about the economy which could be grinding to a halt amid the ever-increasing coronavirus cases that continue to grow. News release of the advance US Q2 GDP report on Thursday, which showed that the economy has contracted by a record 32.9% annualized pace.
Gold has been sensitive to changes in interest rates alongside reacting to signals sent by the FOMC members about the condition of the U.S. economy.
I will now be observing Friday's US economic docket which features the release of Core PCE Price Index, Personal Income/Spending data, Chicago PMI and Revised Michigan Consumer Sentiment. This along with the broader risk sentiment,supply and demand, might produce some meaningful trading opportunities within the market.
I'm delighted you've looked into some of the fundamental issues. 'Everybody' thinks Gold is going to the moon. However, gold is knocked about by complex forces coming from the Bond Market, Stock Market and value of currencies. Whilst weakening currencies tend to drive Gold north, when money flows into Bonds the Gold market tends to be drained.
I think that with the turmoil ahead, Gold may surprise a few permabulls.
I think that with the turmoil ahead, Gold may surprise a few permabulls.