Gold Futures

Forex 2020

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The gold futures Jun Comex gold (GCM20) this morning is up +20.9 (+1.22%), contract gained 0.09% on Thursday, as it extended its consolidation following bouncing off $1,700 support level on Wednesday. Gold has been trading within a downward correction after reaching new monthly high of $1,775.80 on Monday almost two weeks ago. Wednesday's price action was quite bullish, but gold keeps extending over month-long consolidation.
Precious metals prices this morning are rallying with silver at a 3-month high. A slump in the dollar index to a 2-1/2 month low today is bullish for metals, as is increased safe-haven demand from the escalation of U.S./China tensions. Weak U.S. economic data today is positive for gold but negative for industrial metals.
Metals are gaining on an escalation of U.S./China tensions after White House advisor Larry Kudlow said today that the U.S. is "furious" with what China has done "in recent days, weeks, and months" and said President Trump will present ideas at a press conference later today of how to hold China accountable.
The recent economic data releases have been confirming negative coronavirus impact on global economies. Precious metal prices continue to see underlying safe-haven demand from the global coronavirus pandemic. Confirmed cases of the virus have risen above 5.932 million globally, with deaths exceeding 362,000.
Most global economic data today was bullish for gold. German Apr retail sales fell -5.3% m/m, stronger than expectations of -12.0% m/m but still the biggest decline in 13-1/4 years. Also, Japan Apr retail sales fell -9.6% m/m, weaker than expectations of -6.9% m/m and the biggest decline in 6 months. In addition, Japan Apr industrial production fell -9.1% m/m, weaker than expectations of -5.7% m/m and the biggest decline in 9 years.
Safe-haven demand and dovish central bank expectations have sparked fund buying of precious metals in recent months. Long gold positions in ETFs on Thursday rose to a new record high of 3,107.71 MT (data since 2002).
 
 
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