Gold bears held the precious metal below $ 1,950 / ounce in the London trading session around 9.55am GMT.
Gold traders were a bit disappointed in the recent policy statement from the US Federal Reserve, as nothing was refreshing for metal traders other than the usual narrative that it remained committed to keeping rates lower. lows for longer periods to trigger inflation. Without a quantitative easing offer on the table, metal traders barely moved as it is now back in the game of waiting for inflation breakeven points to rise.
The gold bears got the gas they needed to keep at bay the bullish movement of gold prices in the macroeconomy that the US dollar index rose despite the fact that the president of the US Fed kept his commitments to maintain. interest rates at very low levels until inflation rises to about 2%.
Traders are also aware that the precious metal turns back every time it hits the $ 1,955 price levels in recent days. The drop is attributed to gradual rallies in major financial markets such as China and the US, as recent economic data showed that the big economic monsters are shooting up from all cylinders.
In the long term, however, the bulls have a strong case as the COVID-19 case burden is rapidly approaching 30 million worldwide, coupled with a fragile economic outlook, particularly in emerging markets, bulls. could falter with the recent development of COVID-19 vaccines. it is believed in some quarters that it will be ready before the close of 2020 or, in the worst case, 2021, which means that it is very unlikely that the precious metal will exceed its record above the $ 2,072 recorded in August 2020 again.
