Are the gold bulls contemplating on taking the $2,000 challenge?

August 4, 2020 - 2 months ago
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The precious yellow metal prices currently consolidate around the $1,970 mark (as of writing) since prices pierced a record high against the greenback at $1,989 as investors continue to fear over the global economic fallout from surging coronavirus cases keeps the bullish interest for the safe-haven metal.

The U.S. count for new confirmed cases of COVID-19 continued its march toward 5 million, with the death toll reaching 155,000, as White House coronavirus task force coordinator Dr Deborah Birx warned that the pandemic had entered a “new phase.” Birx’s warning came after President Trump continued to push his belief that the increase in cases was only a result of increased testing.

He tweeted over the weekend that Dr Anthony Fauci, his administration’s top infectious disease expert, was “Wrong!” for suggesting the U.S. failed to properly respond to the outbreak, while other countries did.

New COVID-19 cases reached 4.69 million in the U.S., with the death toll rising to 155,124, according to data aggregated by Johns Hopkins University.

Nearly 1.5 million people have recovered. Investors continue to monitor negotiations over a new stimulus package as lawmakers struggle to make progress.

House Speaker Nancy Pelosi said she, Senate Minority Leader Chuck Schumer and White House chief of staff Mark Meadows held “productive” discussions on Monday but added there are several issues still outstanding.

We are moving down the track,” Pelosi said, but “still have our differences.”

Both sides have indicated they agree on another $1,200 stimulus check but remain deadlocked on additional unemployment assistance.

At present, although the assessment is neutral in the short-term, further challenges towards the $2,000 should not be ruled out, but still, be wary of a bull trap from or above here.

The crucial support is way off at $1,900, with an intraday level viewed from $1,955 as a temporary based.

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