15.09 - Gold is rejoicing another leg higher
- by George Solotarov
Gold (XAU/USD) is rejoicing another leg higher, sitting at the highest levels in nine days above $1960. Gold benefits from the US dollar weakness, as the greenback breaks lower on the return of the risk appetite, thanks to the stronger Chinese activity numbers and US-Sino trade optimism. Looming Brexit risks boost the safe-haven appeal of gold. Coronavirus vaccine hopes will continue to bode well for global equities at the expense of the dollar, which is likely to render gold supportive.
The Technical Confluence tool shows that gold is on the verge of recapturing the robust barrier at $1969. Alternatively, plenty of healthy support levels are likely to limit any retracements, with the immediate cushion aligned at $1962, the intersection of the previous day high. Sellers will then challenge minor support at $1957.