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In Asian markets on Friday (November 20), the US dollar index was basically stable and is now around 92.30; spot gold remains under pressure and current trading volume is around $ 1,864 per ounce. Analysts noted that optimistic news of the new crown vaccine that came out earlier this week continued to push the price of gold down. Furthermore, from a technical perspective, the trend in gold prices has formed a “dead cross”, which may indicate that the price of gold faces greater downside risks in the future. However, current expectations for more economic stimulus measures in the United States and the uncertainty of the US general election still support the gold price trend to some extent.
Due to progress in the development of the new coronavirus vaccine, which raised hopes for a faster economic rebound, and lowered the stakes for the immediate introduction of the coronavirus rescue plan in the United States, gold prices fell on Thursday. . Spot gold closed at US $ 1,866.76 an ounce, down US $ 5.01 or 0.27%.
The American pharmaceutical company Pfizer announced on Wednesday that the vaccine developed jointly by it and the German biotechnology company BioNTech has an effective rate of 95% in the analysis of final data from clinical trials and has fulfilled the requirements to request authorization for emergency use. . Optimism about vaccine development has weakened the appeal of gold.
Jeffrey Sica, founder of Circle Squared Alternative Investments, said: “The vaccine removes some of the long-term uncertainty about the virus. Therefore, despite concerns about the short-term impact of the increase in COVID- 19, people are more optimistic in the long term, which may be what we see. The reason why the price of gold has fallen. “
Kitco Metals Senior Analyst Jim Wyckoff said: “We are concerned about the current COVID-19 outbreak, but we expect the vaccine to be available in a few months so this has contributed to market volatility to some extent.” .
ABN AMRO’s currency and precious metals strategist Georgette Boele said in a report released Wednesday that the trend for gold may depend entirely on how the outlook for a potential vaccine will affect future economic growth.
Zaner Metals analysts noted that despite the “explosive” increase in the number of confirmed new diagnoses in the United States, upbeat vaccine news continues to dilute the safe-haven popularity of precious metals, preventing gold from rising further. more.
IG Markets analyst Kyle Rodda said: “Currently, there is no catalyst to drive up the price of gold. The market has a slight suppression of inflation expectations, which puts pressure on gold prices, because now it is clear that the US fiscal stimulus measures may not be as previously thought. Large. “
The technical aspect is also negative for gold prices. Thegoldforcast analyst Gary Wagner said that the gold market has a “fork,” which means it may fall further. The 50-day moving average of the price of gold has fallen below the 100-day moving average. From a technical perspective, this is a bearish sign.
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