Gold made a major breakthrough at the start of trading on Monday, continuing a rapid rally on Friday that saw the precious metal break through the key 1,750 level.
Gold had been trading in a tight range since the start of the week last week, but the bulls had a big day on Friday when it broke through the 1,740 level to close above it.
Gold prices ended the week ona positive note, said Lukman Otunuga, senior research analyst at FXTM, as “the rise in China and the US novel Coronavirus case accelerated the shift to havens.”
“Investors are on high alert due to the development of the COVID-19 epidemic, and despite a slight rise in stocks, global sentiment remains fragile and there is a strong sense of caution in the air,” he told MarketWatch. “If risk aversion becomes the dominant theme, expect gold to shine in the gloom over the next few weeks.”
Still, Otunuga said a “strong dollar” could limit gold’s gains. A stronger dollar can lure investors away from dollar-denominated precious metals.
According to data from Worldometers, as of 07:38 Beijing time on June 22, the cumulative number of confirmed coVID-19 cases worldwide has exceeded 9.03 million, with 9,035,559 confirmed cases and 469,584 deaths.
In the United States, there have been more than 2.35 million confirmed cases of COVID-19, or 2,355,797, and more than 120,000 deaths, or 122,246.
On Saturday in Tulsa, Oklahoma, Mr. Trump held his first major rally since the coronation crisis.
The months-long coVID-19 outbreak, its economic impact and high unemployment, coupled with the wave of protests following the death of African-American George Floyd, have put enormous pressure on Trump’s re-election campaign and inevitably become the focus of bipartisan competition.
In the face of criticism and falling polls, Mr Trump held his first rally since the full outbreak of coVID-19 in Tulsa, in the north-eastern state of Oklahoma.
But the campaign told AFP that none of them had direct contact with the President.
In recent weeks, about 20 STATES, including Oklahoma, have seen a daily rise in new confirmed cases. Public health experts warn that the epidemic in the United States will continue to be severe as states have restarted their economies to varying degrees.
Novel Coronavirus infections rose by 32,500 cases on June 20, the highest number since May 1, marking the fifth consecutive day of high new cases. Arizona, Florida, California, Nevada and South Carolina all recorded new single-day cases. In Florida, a key swing state, 4,049 new cases were recorded in a single day, the third straight record high.
At the rally, Mr. Trump defended his handling of the outbreak. He argues that the United States has more confirmed cases than any other country because it has more novel Coronavirus tests than any other country: “So I said to them, ‘Please slow down the tests.'”
But after Mr Trump’s remarks at the rally, an administration official said the President was “clearly joking”. “He was obviously joking,” the official said. “We are the world leader in novel Coronavirus tests and have done over 25 million tests.”
In general, Trump tried to tie His Democratic rival Biden to extreme positions on every topic, the New York Times said of the rally. Since the outbreak began in large Numbers in the US, the Trump administration has had to deal with a wave of public health, economic crisis and a nationwide backlash against racism, the newspaper said. The problems have had a serious impact on Mr Trump’s re-election campaign, forcing his campaign to restart its campaign as quickly as possible to boost support.
A Fox News Channel poll released on June 18 showed Trump trailing Biden by a further 50 percent to 38 percent. The poll comes amid weeks of protests over race and police brutality. In a poll last month, 48 per cent of respondents backed Mr Biden and 40 per cent backed Mr Trump.
At the rally, Mr Trump praised his administration’s record on the economy, saying “we built the greatest single economy in the world”, “we have the best jobs Numbers ever” and “the best stock market Numbers ever”.
“If the Democrats are in power, then the mob will be in power, no one will be safe, no one will be in control,” he insists. “Biden is not on the radical left, but now he is controlled by the radical left,” he said.
White House trade adviser Navarro said in an interview with CNN on Sunday that the United States is taking cautious steps to prepare for a second wave.
Mr Navarro said: “We are restocking epidemic stocks because we expect problems in the autumn.”
“You need to be prepared for what might happen,” he said. I’m not saying it’s going to happen, but of course you have to be prepared for it.”
As the number of new infections continued to rise, the market opened on a downbeat note Monday, with U.S. stock futures down Monday, with the Dow Jones Industrial Average down more than 100 points and the S&P 500 and NASDAQ 100 both down 0.3%. Nikkei index futures were down 1.02 percent in early trading.
Meanwhile, gold rallied, with futures briefly breaking $1,765 an ounce and spot gold briefly touching $1,750.
Goldman Sachs on Friday raised its outlook for gold, predicting it will hit $2,000 an ounce within a year as real interest rates remain low, the dollar weakens and investors worry about currency depreciation in the wake of the CoVID-19 crisis.
Goldman Sachs analysts said they raised their three -, six – and 12-month gold forecasts to $1800, 1900 and $2000 from $1600, $1650 and $1800. Goldman raised its three-month, six-month and one-year silver forecasts to $19, $21 and $22, up from $13.50, $14 and $15, respectively.
In the short term, FXStreet analyst Anil Panchal wrote that as gold continues to rise above $1745.12, bulls are likely to target around the May 20 high of $1754 and further toward the May high of $1765.
On the downside, the uptrend line since March 20 at $1,717 is now providing short-term support, a point to watch if gold falls back.