The precious metal prices, however, remained above $2,000 a critical support level, showing the pullback in prices recorded recently might be for the short term.
Gold traders are still relatively bullish on growing global geopolitical uncertainty on what will follow in the months ahead.
President Trump is likely to increase more pressure on the Chinese ahead of the US Presidential election scheduled to hold in November. China presently has been reluctant to take countermeasures in targeting America’s economy.
However, this could change rapidly.
The surge in new COVID-19 caseloads at emerged markets especially in America and Europe makes a case for Gold rising up continually. An effective COVID-19 vaccine seems not to be ready anytime soon, for human use.
Sooner than later, global fiscal officials will be forced to resume economic restrictions once again.
Although the yellow metal looks slightly overbought from a technical perspective, there is currently a perfect storm that could keep the bullish going with only occasional minor setbacks.
Gold bulls are riding on macros that include rising global COVID-19 caseloads, soaring geopolitical risks, the high volume of liquidity in the money market triggered by global central banks, and a blurred economic outlook will keep demand for the precious metal upward.
Gold prices have gained about 35% in 2020 as global fiscal policymakers; seek to provide aid to an already battered global financial system by providing unprecedented global stimulus policies.
The greenback’s futuristic performance will be a major factor on how far gold bulls can go.