Multiple factors stimulated Gold to soar, with price breaking $1760 to a 7-year high record.
Gold edged higher, reaching a maximum of $1760.14/ounce, a new high since October 15, 2012. Gold is expected to rise to $1800.
A variety of factors spurred gold to rise:
- The unlimited QE and low interest rate of the Fed will continue to support Gold price
The recovery of the US economy will be extended to the end of 2021, which exceeds market expectations. In addition, US GDP is expected to shrink by 20% - 30% in the second quarter. The data shows that the United States will continue to carry out quantitative easing policy, as well as the rising negative interest rate expectations provide support for the continuous rise of Gold.
- Gold price supported by worries about the second outbreak of the epidemic
Although Europe and the United States have launched a lot of gradual measures to unseal the epidemic, at the same time, the unsealing has also increased the market’s concern that the outbreak may occur again. After the Fed’s unlimited easing, there is no shortage of cash in the hands of investors, and the fear of the outbreak will increase the market’s risk aversion sentiment and support the safe Gold price.
Technical analysis
On the weekly chart, Gold hit a peak of $1760.14/ounce, a new high since October 15, 2012.
On the daily chart, the trend of the average line appears rising pattern, and the average lines of different periods are arranged in order. And K-line three days in a row rising, indicating a good momentum.
Trading Suggestion: Make long position at current price, target $1800.