As of July 10, 2020, gold prices have been holding up to $1800/ounce while gold futures of August Comex are trading up to 0.25% at $1808.30. Investors are supposed to be worrying the increasing cases of Coronavirus in the nation and economic recovery could be slowed down once again. Around 60,000 new cases have been reported in the US on Thursday, a new highest daily record. Equities climbed even higher despite gold’s bullish trend and are still ignoring the worries of COVID-19.
Bart Melek, TD Securities head, said, “Reopening could get more closures in Texas, Florida and other such states and it might be as quickly as expected. When it comes to reopening, other countries might be more worried considering the US experience. We might see lousy numbers in upcoming months and the economy could suffer.”
Analysts expected any drop in prices to be brought to the higher side for any precious metal. But a temporary hike of over $1800 was not being ruled out. Melek added, “We might consolidate around existing levels for now. But the tilt is going upside down. Economic recovery might be quite slower. It could be the reason behind that. But it is also true that the risk appetite of people might not be going higher.”
The recent hike of $1800/ounce is very bullish for gold, according to Everett Millman, precious metals analyst in Gainesville Coins. Millman added, “Such levels were really unexpected over the past nine years. So, we are going to test the support a few more times.”
Gold is heading north next week with $1800 an ounce
Analysts also pointed out that the prices of gold are heading north further next week by $1800. Millman added, “We are going to test such highest levels and it might go further around $1900.”
He added, “All such factors in support for gold earlier this year are still there. There is nothing changed or improved. Gold is expected to be on the higher side in the second half of the year.”
Since September 2011, the highest recorded price of gold of $1921 is now at sight, according to Georgette Boele, senior precious metals and FX strategist, ABN Amro.
Boele added, “The all-time high of gold of US$1921against the dollar is now in reach. Gold prices are going to rise. It seems the stars are in favor of gold. Ultra-low rates of interest, fiscal stimulus, negative real estate yields, and technical outlook are being eased with aggressive financial policy. All these things are in favor of gold prices.”
Han Tan, a market analyst in FXTM, issued another bullish call and said, “There is a healthy environment of gold considering the stubborn risk aversion in markets and subdued real yields in the US. The closing price on September 5, 2011, was $1900.20 behind him.”