Gold prices sink amid rising dollar strength

Written by admin

Gold prices on Monday were trading lower as the dollar strengthened to start the week, amid concerns about tensions between the U.S. and China. Investors also watched COVID-19 infections as businesses reopen domestically and elsewhere in the world.

Meanwhile, President Donald Trump’s administration is planning to issue a warning that hackers tied to the Chinese government are attempting to steal data from U.S. researchers developing a coronavirus vaccine, The Wall Street Journal reported on Monday.

The charge comes as Sino-American tensions have flared up lately, with President Trump on Friday saying during a Fox News interview that he was unsure if he should cancel a partial trade deal between Washington and Beijing forged in January.

Gold should prosper in that environment but a stronger dollar and a solid run-up by gold toward a psychologically important level at around $1,700 was creating some friction for the yellow metal.

On Comex, June gold GCM20, -0.79% fell $5.50, or 0.3%, at $1,708.40 an ounce, after the most-active contract for gold saw a weekly rise of almost 0.8% put in on Friday.

“Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,788.80,” wrote Jim Wyckoff, senior analyst at Kitco.com, in a Monday research note.

“Technically, the gold bulls have the overall near-term technical advantage amid an uptrend on the daily bar chart,” he said. “Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,666.20,” he added.

Meanwhile, July silver SIN20, -0.59% was down 5 cents, or 0.4%, at $15.725 an ounce, following a weekly rally of nearly 6% for silver futures, according to FactSet data.

A measure of the dollar against a half-dozen currency rivals was up 0.4% at 100.11 on Monday, as gauged by the ICE U.S. Dollar Index DXY, 0.39%.

Meanwhile, China’s central bank…

Continue reading at MARKETWATCH.com

 

 

About the author

admin

Leave a Comment