The decline of gold seen in the last few days is linked with the clear risk on scenario which is dominating markets. Moreover, the Democrats’ success in Georgia should make it easier for Joe Biden to put his agenda in place and initiate more fiscal stimulus. Investors reacted by betting on more riskier assets than gold and the price declined to $1,900 before the riots in Washington generated a recovery to $1,930.
The situation seems to be calming down, but of course if this is seen as a major risk for the Dollar, the consequences on markets would be much bigger and gold could find further fuel to continue its recovery.
