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Dollar Weakness To Support Gold

By Abhishek BansalCommoditiesApr 22, 2021 05:44AM ET
www.investing.com/analysis/dollar-weakness-to-support-gold-200574621
Dollar Weakness To Support Gold
By Abhishek Bansal   |  Apr 22, 2021 05:44AM ET
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Gold rallied above $1,790 due to the resurgence of Covid-19 infections throughout the world, which has raised the prospects of new lockdowns. The world economy is likely to suffer from it. And global central banks may continue to support the economy by keeping interest rate lower for longer-term. 

The dollar index is trading near 91.095 which is sharply lower from the recent high of 93.470 registered on Mar. 31. Also, weakness has continued in United States 10-year Bond Yield which is positive for precious metals prices. Yield is now trading at 1.5574 and sharply lower from the recent high of 1.7760 registered on Mar. 30.

Gold has underlying support from the Covid pandemic, which is dovish for central bank policies. 

On the economic data front, the UK February house price index rose +8.6% y/y, stronger than expectations of +8.0% y/y and the biggest increase in 6-1/4 years. UK March CPI rose +0.3% m/m and +0.7% y/y, weaker than expectations of +0.4% m/m and +0.8% y/y.

Gold prices are likely to trade firm while above the key support level of 50 days EMA of $1,762. It may find stiff resistance near $1,804 and $1,814.
 
 

Dollar Weakness To Support Gold
 

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Dollar Weakness To Support Gold

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Comments (2)
Kevin McCarthy
Kevin McCarthy Apr 22, 2021 7:52AM ET
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DXY has nothing to do with gold. it doesn't even account for important currencies like the Yuan. the only effect it has on gold is the phycological effect it has on traders, which is usually short lived.
David Shepherd Zimba
David Shepherd Zimba Apr 22, 2021 7:52AM ET
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so is gold just making a correction?
Shreyas Sharma
Shreyas Sharma Apr 22, 2021 7:39AM ET
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🙌🙌🙌🙌
 
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Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
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