China fights new COVID-19 outbreak
According to the different reports, Hundreds of flights have been canceled and schools closed, while they ramped up mass testing since yesterday in more than five big provinces. Officials say it's linked to a group of tourists.
This happened in China, while many countries tried to ease restrictions. China with strict border closures and targeted lockdowns trying to control the latest outbreak, which was linked to an old couple who were in a group of several tourists.
They started their journey in Shanghai before flying to Xi’an, Gansu province, and Inner Mongolia. And now, at least five provinces and regions, including the capital Beijing, schools closed, massive testing going on, also imposed targeted lockdowns of housing compounds in some areas.
Gold futures pop higher, printing the strong weekly gain, with Silver on track to record an amazing weekly gain, up 4.5%, in more than 5 months.
Besides the news from China, the gold futures were headed higher today, as some investors tried to protect themselves against the strong waves of stock markets over the last day of the week. Also, earnings with missing in some big tech like Snap increase the concerns.
At the same time, gold is often perceived as a hedge against rising inflation, and it was increasing in past weeks, which had pressure on Gold price. Today US-10 year Bond Yields eased to 1.67% from an earlier peak of 1.70%. For now, and with current prices, gold, already increased 1.4% and gained four weeks out of the past five weeks. If gold can close above 1.800, it will mark the sharpest weekly rise since Aug. 27.
From the technical point of view, with breaching the 50 and 20 DMA at 1,774 and 1,787, the downtrend line has breached and OBV side movement lines also breathed higher, and now with RSI above 61 and increasing OBV trend line, gold remains bullish. The next target sits at 1,820.
