The US dollar was soft on Monday and with the uncertainty pertaining to COVID-19, gold was able to leap through prior resistance, supported in the $1,680 and then moving through the low $1,700s. The global stimulus is keeping the yellow metal elevated, reacting also to the US dollar’s ebbs and flows.
In the US session, Gold for June delivery on Comex added $8.60, or 0.5%, to settle at $1,761.40 an ounce making for the highest finish for a most-active contract since Oct. 11, 2012. The move on Monday toppled Thursday’s seven-year high, falling more in line with US stock markets with both the S&P 500 and DJIA falling into negative territory on Monday. In Asia, the USD/JPY pair is sliding to fresh lows which will bode well for gold bulls. At the time of writing, USD/JPY is trading at 107.54 between a range of 107.53 and 107.76.
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