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In 2020, Australia had record exports of gold

The Australia natural resources industry has produced revenue records for iron ore, gold and copper in 2020, according to the Australian Bureau of Statistics data.

In 2020, Australia had record exports of gold
09.02.2021 11:44
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The Australia natural resources industry has produced revenue records for iron ore, gold and copper in 2020, according to the Australian Bureau of Statistics data.

Gold and Silver prices advanced for a third day against the backdrop of a weaker US Dollar. Markets awaited a fresh US$ 1.9 trillion US Covid-relief package to be approved by Congress. The US Dollar index retreated to 90.74 from a two-month high of 91.55 as stimulus hopes were built against the backdrop of a much weaker-than-expected non-farm payrolls report. 

Further weakness in the Greenback may continue to support precious metal prices, which tend to be inversely correlated to the US Dollar. Gold and silver prices exhibited a negative relationship with the DXY US Dollar index, showing correlation coefficients of -0.79 and -0.92 respectively over the past 12 months.

Technically, gold prices returned to ‘range-bound’ trading conditions after briefly dipping below it, with US$ 1,810 and US$ 1,870 serving as immediate support and resistance levels respectively.

Retail gold traders are leaning heavily towards the long side, with 84% of positions net long, while 16% are net short. Traders have increased short positions substantially (+20%) while reducing long exposure overnight (-5%).