The XAUUSD has been testing the support level of 1850 USD since the beginning of November and has shown signs of a modest decline.

 Progress in several vaccines for COVID-19 and stronger economic data are the driving factors behind gold’s bearish trend. Optimism rose with Pfizer sharing the efficacy analysis of the vaccine that it is developing. This positive development on the vaccine front put additional weight on gold. Similarly, strong US data showed signs of an economic recovery, leading to an appreciation in the USD, thus causing investors to drift away from the yellow metal.

Gold is now at four-month-lows lowest at 1838 USD which is an almost 2.5% fall from its starting price. Any decisive move below 1838 USD would attract sellers, dragging the pair down to 1810.



About Author

Mithun Girishan

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

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