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The yellow metal has had a much quieter week in terms of volatility and has recovered from earlier weakness to end the week in the green.
The ongoing coronavirus spread has seen residual safe-haven demand for gold despite equities shrugging off the risks to continue higher. Recent reports suggest that the spread of the virus is slowing down. And, the market is hopeful that current clinical trials underway in China will produce a vaccine soon.
On the US data front, a weaker than expected CPI reading on Thursday (0.1% month on month vs 0.2% expected) has also helped keep gold demand intact.
US data, as a whole, has been strengthening recently, though stickiness in inflation (which is still subdued) means that the question of a Fed rate hike is still very much premature.
For now, gold prices remain in the upper part of the bullish channel from 2018 lows. Price is still holding above the 1554.69 level support, for now, suggesting continued upside.
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