The bullion price has rebounded in the last few hours on the back of a combination of market drivers. Firstly, the weakening of the US Dollar is lifting up the price as investors are betting on further declines for the greenback, which is proving a supportive element for gold and other assets priced in dollars. On top of this, the Covid-19 story is far from finished. Despite the vaccine, the pandemic is continuing to show growing numbers in many countries. This will generate further intervention measures of central banks as investors well know with gold retaining its role as a haven asset in both the medium and long-term.
Finally, the price decline of the last few weeks has generated a recovery in physical demand from traditionally the most active markets of China and India. In this scenario bullion has jumped above $1,820, while the first key resistance is the former support zone of $1,850-$1,860.