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The yellow metal has seen plenty of volatility this week. A steep sell-off earlier in the week saw price peeling away from recent all-time highs.
However, the dip quickly found buyers and price has managed to stem those earlier losses and regain some ground. Ultimately, though, price is still ending the week lower.
The sell-off in gold was largely fuelled by a rally in US Treasuries which found decent support earlier in the week. This saw the US dollar rising. However, the upside moves in USD ran out of steam midweek, and price quickly reversed lower, helping fuel support on gold prices.
In terms of the risk environment, equities prices have remained well supported this week. This has also diluted any safe-haven demand for gold despite rising concerns over the prospect of a second wave of COVID-19.
With the Federal Reserve and other central banks committed to a path of easing, equities markets look likely to remain well supported. This could create further tension with gold prices...
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