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The yellow metal has seen a strong rally this week with price breaking out to fresh 2020 highs.
The move comes despite equities remaining near recent highs and is primarily driven by the sell-off in the US dollar.
The greenback has come under renewed selling pressure this week amidst growing fears of a second wave of COVID-19. Currently, over 40 states are reporting new highs in infection numbers.
The US has come under widespread criticism for its handling of the virus. Some states are needing to reintroduce lockdown measures to combat a fresh outbreak of the virus.
US unemployment claims on Thursday came in lower than expected. This suggests that the post-lockdown recovery in the economy is continuing this month.
The June jobs report highlighted record growth in employment with nearly 5 million jobs added last month. However, the prospect of further lockdowns is weighing on USD, keeping gold prices supported as traders move back into the safe-haven on a larger scale.
Gold Hits H...
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