By David Brough
Gold appears to be pausing its advance towards $1,800 an ounce amid conflicting economic data.
While fears over a second wave of coronavirus and rising numbers of cases around the world, combined with central bank monetary policy stimulus, continue to underpin bullion, the latest strong U.S. employment data has increased an appetite for risk by investors and powered equities ahead.
Bullion was little changed on July 3, down 0.15 percent at $1,774.02 per ounce, seemingly finding firm support above $1,750.
While share markets continue to find strength, gold’s advance towards key resistance at $1,800 appears to be delayed.
“Scientists are extremely worried about a second wave of the virus as lockdown restrictions are eased within those countries which might appear to have things under control,” wrote Lawrie Williams, precious metals columnist of bullion dealer Sharps Pixley.
“We still expect gold to shrug off its negatives and move back towards $1,800 — and maybe above, although we anticipate strong initial resistance at this psychological level.
“A true breakout will likely take time, and this will also be true for any breakout above its all-time high of around $1,918 and again at $2,000.”
Disclaimer: Any opinions expressed in this article are solely those of the author and should not be seen as investment advice.
