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Gold prices sink amid rising dollar strength | The Mesh Report

Gold prices sink amid rising dollar strength

Mike Hammer May 11, 2020 Comments Off on Gold prices sink amid rising dollar strength

Gold prices on Monday were trading lower as the dollar strengthened to start the week, amid concerns about tensions between the U.S. and China. Investors also watched COVID-19 infections as businesses reopen domestically and elsewhere in the world.

Meanwhile, President Donald Trump’s administration is planning to issue a warning that hackers tied to the Chinese government are attempting to steal data from U.S. researchers developing a coronavirus vaccine, The Wall Street Journal reported on Monday.

The charge comes as Sino-American tensions have flared up lately, with President Trump on Friday saying during a Fox News interview that he was unsure if he should cancel a partial trade deal between Washington and Beijing forged in January.

Gold should prosper in that environment but a stronger dollar and a solid run-up by gold toward a psychologically important level at around $1,700 was creating some friction for the yellow metal.

On Comex, June gold GCM20, -0.79% fell $5.50, or 0.3%, at $1,708.40 an ounce, after the most-active contract for gold saw a weekly rise of almost 0.8% put in on Friday.

“Bulls’ next upside price objective is to produce a close in June futures above solid resistance at the April high of $1,788.80,” wrote Jim Wyckoff, senior analyst at Kitco.com, in a Monday research note.

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