Bangkok Post

Gold Watch


Gold prices jumped last week by $120 an ounce as massive support from the US Federal Reserve improved market liquidity, while passage of a $2-trillion rescue plan cheered investors. The dollar declined, helping gold, as a surge in US unemployme­nt claims underlined the impact of Covid-19. As well, prices were boosted by news that the world’s largest gold smelter was closing in South Africa, and three major Swiss refiners also had to suspend operations because of Covid-19. The afternoon fixing on Friday in London was $1,617.30, compared with $1,494.40 a week earlier.

Expect to see more selling as investors take profits from gold’s recent strong gains. If selling pressure does not cause the price to fall too much, the supports at $1,554 and $1,548 an ounce would be a good place to start accumulati­ng gold again. If prices move up to test the resistance levels at $1,671 and $1,703, sell some of your holdings to reduce portfolio risk.

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