Gold futures rose earlier on Monday, supported in part by the weaker US dollar, which provided an index for the same product as global stocks rebounded.
The US dollar lost 0.5%, as measured by the ICE US Dollar Index DXY, -0.53%,
a dollar indicator against half a dozen currencies. A weaker US dollar can make foreign currency assets more attractive to buyers using other currency units.
The greenback gains came amid a broad rally in stocks attributed to a surge in the Chinese markets. Beijing state media published a front page editorial encouraging investors to buy stocks to support domestic markets.
Still, investors are struggling with the escalation of new COVID-19 cases in the United States, concentrated in several critical states, including Arizona and Florida.
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In this context, the GCQ20 August gold,
+ 0.32%
It rose $ 4.30, or 0.2%, to $ 1,794.50 an ounce after the busiest contract ended on Thursday, about 0.5% more for the shortened vacation week, according to FactSet data.
“Technically, gold bulls have a solid overall technical advantage in the short term. Bulls’ next bullish price target is to produce an August futures contract close to solid resistance at the weekly high of $ 1,807.50, “wrote Jim Wyckoff, principal analyst at Kitco.com.
“Bears’ next target for lower short-term prices is pushing futures prices under solid technical support to $ 1,754.00,” he wrote.
Gold records the highest quarterly profit in 4 years; we are talking about record prices for the end of the year
Meanwhile, September SIU20 money,
+ 2.28%
It rose 34 cents, or 1.8%, to $ 18,660 an ounce, after the metal made a weekly gain of 1.6%.