Gold has been trading at a record high for several years in mid-session Thursday, after the US Federal Reserve announced a massive stimulus package to tackle the economic toll of the coronavirus pandemic.
The precious metal opened the US significantly higher and then accelerated higher after the Fed made a large $ 2.3 trillion effort to support local governments and small and medium businesses in his latest move to keep the US economy intact while the country fights. the coronavirus pandemic.
At 5:51 p.m. GMT, June Comex gold is trading at $ 1,739.70, up $ 55.40 or + 3.29%.
In economic news earlier in the session, data showed that the number of Americans claiming unemployment benefits in the past three weeks has exploded by 15 million, with new weekly claims exceeding 6 million for the second consecutive times last week as the pandemic suddenly anchored the country to stop.
In response to the spike in unemployment, the United States government is likely to adopt another stimulus package for unemployed Americans. This decision will also support gold prices.
Daily technical analysis
The main trend is upward according to the trend indicator graph. A trade of $ 1,742.60 signaled a resumption of the uptrend. The main trend will go down if the sellers eliminate the last main floor at $ 1,576.00.
The minor trend is also on the rise. A trade of $ 1670.70 will change the minor downward trend. It will also give a downward momentum.
The next bullish target is a strong upward Gann angle at $ 1,768.00. Traversing the strong side of this Gann angle and maintaining the decision will place the market in an extremely bullish position.
On the downside, the closest support angle is $ 1,672.00. It has only been tested once. If unsuccessful, research the market to possibly retreat into a pair of Gann angles rising to $ 1,624.00 and $ 1,597.00.
Since the trend is going up, buyers should continue to jump corners. If the trend goes down, it means investors are looking for value. Professionals do not like to pursue new heights, so we will see periodic short-term corrections. However, the fundamentals support a long-term bullish outlook. The short term outlook will be determined by traders who are willing to play on both sides of the market.