The price of gold this morning showed a negative trend. Precious metal futures for August delivery on a trading floor in New York became 0.16% cheaper. Their current level was around 1,777.05 dollars per troy ounce. Support for gold settled at around $ 1,754 per troy ounce, with resistance at $ 1,807.70 per troy ounce.

Last week was extremely successful for the gold market as precious metals came close to their maximum values over the past nine years. Recall that the cost managed to reach the level of 1,775.18 dollars per troy ounce. However, the strategically important value of $ 1,800 per troy ounce remained unattainable. The growth dynamics were not so strong to manage to cross this line. First of all, there were not enough external stimulating factors, and the mood of investors is too volatile and unstable.

Nevertheless, in the long run, it can be said that gold can overcome the bar not only at $ 1,800 but even at $ 1,900 per troy ounce. The main growth factor, in this case, should be an ongoing negative trend associated with the coronavirus pandemic. Recall the rapid increase in the number of cases noted in the United States and Latin America. Over the past week, the number of infected cases already reached 40% more than during the entire spread of COVID-19.

Another negative factor, but supporting gold, was the multidirectional dynamics of the restoration of the two largest economies in the world, the US and China respectively.

If the former moves with varying success, noting either strong leaps or unexpected drops, the latter, on the other hand, is growing more or less stable but the growth rate itself is not too high.

An unconditional indicator of the return of interest in precious metals as a defensive asset is the greenback, which, by the way, is currently experiencing its worst times. The dollar is weakening, and against its background, interest in gold as a safe haven asset is increasing.

Investors no longer mind about risky assets as they try to secure and preserve their assets as much as possible during this difficult time. The rate of change of trends is slow, but in the future, we can confidently talk about an increase in the cost of precious metals in general and gold in particular. So, the jump in morbidity last weekend has already led to market participants hastening to close their positions in highly profitable, but extremely risky assets. There is still no reason to re-open such positions since the epidemiological situation continues to deteriorate. Of course, the news of the creation of a vaccine against coronavirus supported the markets, but not enough to immediately return what was lost. Therefore, gold remains the main contender for one of the highest speakers in the near future.

Moreover, if the greenback cannot find a foothold in the near future, the precious metal can take advantage of the situation and start a rally to $ 2,000 per troy ounce. At least, some analysts speak of such a development perspective.

The cost of silver futures for delivery in September this morning on trading floors was marked by a slight drop of 0.08%. Its current level is in the region of 18.203 dollars per troy ounce.

In contrast, copper futures for July delivery grew slightly by 0.07% and began to cost $ 2.735 per pound.