On Friday, the price of gold again left the resistance area of $1,800 per ounce and fell to the level of 1777.
Despite the drop, the stock recorded its third weekly gain in a row, as investors are optimistic about signs of recovery in physical demand in the US labor market. Gold shipments from Switzerland to India and China rose last month, indicating a resumption of purchases by the largest consumers after a disastrous year. Meanwhile, the number of applications for unemployment benefits in the US unexpectedly fell to a new low, signaling a strengthening labor market, and this negatively affected the demand for safe-haven assets.
Prices are stabilizing near an eight-week high as U.S. yields decline, boosting the attractiveness of the interest-free precious metal. The rise in coronavirus cases in some parts of the world has raised concerns about the pace of global growth, although stimulus measures remain in place. European Central Bank President Christine Lagarde said on Thursday that the ECB will not discuss the option of gradually reducing the volume of bond purchases, even if it sees clear signs of economic recovery.
Gold prices are now supported by the recovery in demand from India and China, the weakening of the US dollar and the fall in Treasury yields. At the moment, the asset continues to grow in the short term. The 1800 level remains the key resistance, the breakdown of which will ensure further upward movement on the markets.
Gold Trading Signal
The forecast assumes further growth of gold to the price values of 1780, 1785 and 1795 dollars per ounce.