"The Afghanistan situation and coronavirus situation is preventing gold and silver prices from a crash," said Chintan Karnani, director of research at Insignia Consultants. Gold's rise despite a very strong U.S. dollar index indicates traders have switched focus to the uncertainties tied to the Taliban takeover in Afghanistan and the coronavirus situation.
Spot gold was up 0.2% at $1,783.97 per ounce by 1151 GMT and up about 0.3% on the week. U.S. gold futures were up 0.2% at $1,785.70. Against the backdrop of recent tapering hints from the U.S. central bank, the spotlight shifts to the Fed’s annual get-together next week in Jackson Hole, Wyoming that could shed further light on monetary strategy and timeline. “As we head into Jackson Hole, some of those corrective gains in gold are likely to get retraced,” said DailyFX currency strategist Ilya Spivak.
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