In the last few days, a stream of positive updates about vaccines has pulled up stocks. The general risk-on scenario hit the gold price, triggering a notable decline last week. Yesterday, bullion dropped a further 1% on the news of the increased percentage success of Pfizer’s vaccine.
So far the price has managed to remain in the lateral trading range of the last few months between $1,850 and $2,070. We are just a few dollars above the lower edge of this channel and a fall below this mark would be seen as a negative signal. Investors, anyway, should not forget the strong dovish activity of central banks, which will last for a long time and are likely to be supportive for the yellow metal.
Chief analyst at ActivTrades and technical analyst for Italian newspaper 'La Stampa'. Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a weekly commentator for CNBC Italy and a columnist for La Stampa. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a 250-pages book on gold and the gold market, followed in 2018 by a new updated edition.
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© 2019 High Leverage FX - All Rights Reserved.