Gold prices continue to decline reversing barrier $2,000 per ounce

Mohammed Abdelkhalik
August 11, 2020

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Gold Price Forecast: 11th August 2020

Gold prices retreated during today’s trading, and the precious metal recorded its largest daily loss in about five months, amid profit-taking and breath-taking deals after the strong gains achieved by gold in recent times.

US economic data showed that producer price index in the country rose by 0.6% during the past month, exceeding expectations.

Expectations of the Corona crisis to subside

Market optimism is increasing about the near containment of the “Corona” crisis, which pushed investors away from precious metals as safe havens, as Russian President “Vladimir Putin” announced the registration of the world’s first vaccine to prevent Coronavirus.

Yesterday, gold prices lost 0.4%, in the second consecutive daily loss, due to corrections and profit-taking from the record level at $ 2,074.87 an ounce.

Gold Price - August 11 2020

Apart from profit-taking selling, gold prices retreated under the pressure of recovery of USD levels against a basket of major and minor currencies.

Leaders in US Congress and officials in the Donald Trump administration said on Monday that they are ready to resume talks on a financial aid deal earmarked to combat the damage from Coronavirus pandemic.

US President “Donald Trump”, said on Twitter that senior members of the Democratic Party in Congress want to meet with him on reaching an agreement to mitigate the economic damage caused by the Coronavirus.

Federal Reserve President in Chicago, “Charles Evans,” said that the US Central Bank needs coordination with the aim of reaching innovative policies that help people most affected by the viral epidemic, which has infected more than 5 million people in the United States.

In terms of trading, gold prices fell for December delivery contracts by 4.6%, or the equivalent of $ 93.40, and closed at 1946.30 dollars an ounce, which is the largest percentage loss since thirteenth of March, and the precious metal reached its highest price today at 2040.5 dollars and less Price at $ 1941.2.

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.