Gold prices give up the two-week peak before Jerome Powell’s comments

Mohammed Abdelkhalik
October 6, 2020

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Gold Price Weekly Outlook: 6th October 2020

Gold prices retreated in the European market on Tuesday to give up the two-week high recorded earlier in yesterday’s commodities trading, due to the activity of correction and profit-taking, in conjunction with weak demand for the metal as a safe haven, this comes ahead of an important speech by Federal Reserve Chairman, Jerome Powell. About the economic outlook.

Some CFD trading brokers reported than Gold prices fell by more than 0.3% to $ 1,906.68, from today’s opening level of $ 1,912.99, and reached the highest level at $ 1,914.55.

On the level of yesterday’s trading, gold prices rose by 0.8%, and reached a two-week high of $ 1,918.75 per ounce, supporting the decline of the US dollar against a basket of currencies.

Gold Price Outlook - 6th October 2020

Other than sales to reap profits, gold prices are declining at the present time, due to weak demand for the metal as a safe haven, in light of the strong sentiment that dominates the markets, with the increasing hopes of adopting a new fiscal stimulus in the United States, and the exit of the US president from the hospital after treatment from Corona.

Gold prices decline slightly before Powell speaking

Intensive talks continue between US House Speaker “Nancy Pelosi” and Treasury Secretary “Stephen Mnuchin” in order to reach an agreement on new legislation on the new relief program from Coronavirus.

By 14:40 GMT, Federal Reserve Chairman Jerome Powell will deliver a keynote speech at the annual meeting of the National Societies for Business Economics on the US economic outlook. The speech is expected to provide new clues about the future of monetary policy in the United States.

The gold holdings of the SPDR Gold Trust, the largest global index fund backed by gold, remained unchanged yesterday, with the total continuing at 1,275.60 metric tons.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.