In a recent editorial by Forbes, contributor Naeem Aslam mapped-out five key factors that are likely to underpin a bullish price action for gold in the coming days.
The key factors include:
A second wave of the novel Coronavirus: Naeem notes that investors are very hesitant towards riskier assets due to the rising Covid-19 cases globally, giving gold a strong safe-haven appeal.
Possible new tariffs on Europe: The Forbes contributor cites that President Trump was weighing new tariffs on $3.1 billion worth of exports from the UK, Spain, Germany, and France. If Trump continues on this path as tensions soar, investors will be forced to seek non-risky assets.
China-US trade war: The trade war between the world powers has taken an even more tense form as the phase-one US-China trade deal has become extremely strained due to the Coronavirus pandemic.
US Unemployment Claims: Naeem notes that the weekly jobless claims data shows just how bad things have gotten in the US labor market. Also, the prospects for a recovery in the near-term seems very unlikely.
Earnings season: Hopes were stoked when some economies began re-opening across the globe. However, that optimism will likely be erased considering the possible second wave will likely trigger unfavorable restrictions on companies’ activities.
Gold (XAU) Value Forecast — June 26
XAU/USD Major Bias: Sideways
Supply Levels: $1,765, $1,780, and $1,800
Demand Levels: $1,753, $1,745, and $1,735
Gold has entered a consolidation range between the $1,765 and $1,758 level. Based on our momentum indicator, this consolidation is acting as a build-up phase for a likely sharp burst to the ambitious $1,800 level. We will see a rally upwards once gold picks up enough buyers at this level.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results
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