FX.co ★ Gold resumes growth after correction

The price of gold jumped sharply on Thursday and was able to finally exceed the strategically and psychologically important level of $ 1,900 per troy ounce. The drivers of this growth remain to be the weakness of the US dollar, as well as hopes for even greater growth after overcoming the cherished level. This means that it is presumable that the correction of the precious metal already ended and a significant increase in value is expected ahead.

The price of precious metals jumped 0.92% on Thursday and reached $ 1,935.51 per troy ounce. The support level was $ 1,874.2 per troy ounce, and resistance was $ 2,089.2 per troy ounce.

Most analysts express full confidence that the value of gold will not stagnate and will continue its triumphant march. Investors are prone to a "bullish" trend, which will allow the precious metal to reach new record levels rather quickly.

The correction of the precious metal below $ 1,900 per troy ounce was not in vain: a large number of weak long positions left the market. In this regard, further outlook for gold is more than favorable. And the decline in interest rates and the continued weakness of the dollar only play into the hands of the precious metal.

Presently, the US economy still fails to demonstrate a sustained and consistent recovery. Experts believe that you should not count on a V-shaped jump. Until the coronavirus crisis is overcome, there can be no question of any recovery at all. Therefore, America can only count on a slow and smooth course of events. For gold, this is the most profitable option, since then its growth will not be limited by almost anything.

In the meantime, market participants focus on statistics on the unemployment rate in the United States of America. The fate of the negotiation process on a trade agreement between the United States and China, which should take place at the end of this week, is of great interest.

Silver futures for September delivery rose 0.25%, pushing it to $ 25.913 per troy ounce.

Palladium increased in value by 1.54% to $ 2,163.99 per ounce.

Platinum rose 1.81% to $ 948.05 per ounce.

Copper for September delivery fell 0.38%, pushing it to $ 2.8708 a pound.