Gold set for four straight days of gains   

15 May 2020

The 2.98 million US jobless claims that were unveiled on Thursday, albeit with a discrepancy in Connecticut’s data, gave investors more reasons to push Gold higher. At the time of writing, Bullion is trading at the $1730 mark for the first time in three weeks.

The sparse evidence of a solid post-lockdown recovery is leaving less room in investor’s portfolios for risk-on assets and more desire for safe havens such as Gold. The precious metals’ ETFs have added to their holdings for 15 consecutive days, bringing the total to a 12-month high of nearly 100 million ounces, according to Bloomberg data

Gold’s path of least resistance remains to the upside, so hitting the $1800 handle is just a matter of time. A host of potential positive catalysts for Bullion remain in the offing, including evidence of a more protracted return to global economic normality, a spike in US-China trade tensions and even the heightened perception of negative interest rates in the US. In the interim, the broader market sentiment should ensure that Gold remains in vogue.

Reporting for EasyKobo on Friday , 15 May 2020 in Lagos, Nigeria

Source: Han Tan, Market Analyst at FXTM

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