Gold Short Term: Modestly Rising
George Lam July 6, 2020 10:47 AM
Spot gold has been modestly rising, as investors are weighing the resurgence of coronavirus infections against potential treatment for the virus.
U.S. coronavirus cases rose 2%, or about 56,000 on Sunday compared with the previous day, more than the seven-day average, according to Johns Hopkins University. Meanwhile, the World Health Organization also reported a one-day high in global Covid-19 infections over the weekend.
Spot gold has been modestly rising, as investors are weighing the resurgence of coronavirus infections against potential treatment for the virus. Last week, pharmaceutical giant Pfizer and German biotech company BioNTech announced early positive data of its Covid-19 vaccine and said they could possibly produce up to 100 million doses by the end of 2020.
From a technical point of view, spot gold remains on the upside as shown on the daily-chart, though has not yet accelerate its rally. In fact, it is holding up well after breaking above a 2-month consolidation range. Nevertheless, investors would have to notice that the daily RSI keeps showing a bearish divergence. The level at $1,715 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance $1,825 and $1,855 respectively. Alternatively, a break below $1,715 may trigger a deeper pull-back to test the next support at $1,675.
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