$1750 testing Bannockburn: gold prices 'finding support above the top of the old range'
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(Kitco News) - Gold prices are holding above $1,750 an ounce, which was the top of its former trading range and is now acting as chart support, as markets collectively ponder whether the surge in COVID-19 cases in the U.S. and elsewhere will lead to more supportive measures by authorities to prop up the economy and markets, said Bannockburn Global Forex. “The number of U.S. cases is reaching records, and at least a couple of states are stopping their reopening efforts,” Bannockburn said. “Several other countries, including parts of Australia, Japan and Germany, are wrestling with the same thing, And some emerging markets, like Brazil and Mexico, have not experienced a lull.” Still, Asia Pacific and European equities traded higher overnight, although stock-index futures in the U.S. are softer. “Benchmark 10-year yields are mostly a little lower today, with the U.S. yield near 67 bp [basis points],” Bannockburn said in an early-day research note. “On the week, the U.S. and Germany have seen yields slip 2-3 bp.” The U.S. dollar has a “heavier bias” against most major world currencies. “Gold is consolidating its gain to new multiyear highs this week and is finding support above the top of the old range (~$1750),” Bannockburn said. “It is the third consecutive weekly gain.”
By Allen Sykora