Gold price dropped back to below $2000 on Tuesday during the European session, the yellow metal dropped to a fresh weekly low of $1983. On Monday, the gold price started the week on a positive note and climbed to near $2050 but later in the North American session, the price retreated to below $2030. In this year, the gold prices have surged more than 35% supported by geopolitical tensions, a weaker US dollar and mounting numbers of coronavirus cases across the globe.
Global stocks edge higher as stimulus talks continue and investors are awaiting an agreement on a US relief bill after U.S lawmakers said they ready to resume negotiations on a coronavirus aid deal. On Monday, Wall Street ended higher supported after President Trump signed executive orders aimed at extending coronavirus aid, such as extending unemployment benefits and deferring student loan payments.
Crude oil prices trading higher on Tuesday, amid hopes of a more stimulus in the US, and last week, Iraq confirmed that it would curb crude production by 40,000 BPD during August and September to make up for its overproduction of crude oil over the past three months.
The US dollar slightly retreated from the day high, during the Asian session the greenback surged to a fresh weekly high of 93.70. The EUR/USD rebounded from the 1.1720 support zone boosted by strong German economic sentiment data.
Gold price slightly recovered from the daily low, at the time of writing the yellow metal trading above $1990.
On the data front, The UK unemployment rate reported at 3.9% in the second quarter of 2020, below market expectations of 4.2% and the unemployment benefits in the rose by 94.4 thousand to 2.7 million in July 2020, following a 28.1 thousand decline in the previous month.
On Monday, the US reported the latest job opening numbers, the US JOLTS job openings rose to 5.9 million at the end of June versus 5.4 million printed a month earlier.
On the US-China front, The US Trade Representative, Robert Lighthizer, and the Treasury Secretary, Steven Mnuchin, are expected to hold a video conference with Vice-Premier Liu He this week, to review the implementation of the Phase 1 trade deal.
The number of people infected with the coronavirus across the world surpassed 20 million, of which at least 736 thousand people have died, according to data released by the Johns Hopkins University. The US has also suffered the most deaths at 163,331, while there have been 101,000 in Brazil, 52,000 in Mexico, 46,611 in the UK and more than 44,000 in India.
XAU/USD: Currently the gold price supported at $1980 levels, any break below this level will open the doors to $1970 and $1950. On the other upper side, the immediate resistance at $2010 and $2015.
The important levels to watch for today: Support- 1980 and 1970 Resistance- 2010 and 2015.
EUR/USD: At the time of writing the currency pair trading above 1.1780 after dropped to 1.1720 during the early session.
The important levels to watch for today: Support- 1.1710 and 1.1670 Resistance- 1.1800 and 1.1830.
Quote of the day: I always knew I was going to be rich. I don’t think I ever doubted it for a minute - Warren Buffet.
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