"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.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.