Gold Bugs Close in on $1,800 Mark, but Face Uphill Task Ahead

At the time of drafting this report, gold bugs seem to be fairly in control with gold futures nearing $1,800 per ounce despite recent data revealing the greenback’s value is gaining strength day by day.

Gold bulls are riding the bandwagon high on reports new cases of COVID-19 infection has broken above 400,000 in the world’s second most populated country (India), arbitrarily gave gold bugs the firepower to challenge the $1,800 price levels.

The yellow metal earlier reverses the pullback from its intraday high while picking up bids at $1,794 per ounce, up 0.58% for the day, as the precious metal rises for the second consecutive day with US Treasury yields and the greenback weak responses to the latest challenges in growing risk sentiments across the market spectrum.

At press time, the global crypto market value stood at $2.35 trillion, posting a 5.16% increase over the last day with Ethereum and most altcoins trading close to record high, which wasn’t enough to deter growing demand for gold.

However, gold bulls face an uphill task, with recent reports revealing the world’s most powerful economy was on the path to full recovery with the U.S. ADP Nonfarm Employment Change rising to 742,000 in April.

Such growth was the biggest in seven months as American businesses increased their production capacity in response to high economic demand in play boost by stimulus support, suggest gold bugs might unlikely have enough gas to stay afloat in the coming weeks.

In spite of the soaring dollar and the appetite for more risk, gold bugs are hopeful to attack the $1,800 threshold one more time.

For a look at all of today’s economic events, check out our economic calendar.