Gold Price News and Forecast: XAU/USD bugs awaiting their discount
|Gold Price Analysis: XAU/USD buyers await fresh clues around mid-$1,900s
Gold prices seesaw around $1,951/52 during the initial hour of Monday’s Asian session. The yellow metal began the week’s trading near $1,953.50 while keeping the late Friday's range between $1,950 and $1,955. The bullion’s recent inactivity could be traced to the uncertainty over the US polity as Donald Trump challenges Joe Biden’s victory in the latest elections. Also, the Republicans’ hold in the Senate offers additional troubles for the recently elected Democratic leader. Further, the coronavirus (COVID-19) and Brexit are additional hurdles for the precious metal buyers.
The Chart of the Week: Gold bugs awaiting their discount
The price of gold has been supported on the US election outcomes as the US dollar slides into the hands of the bear’s on what most would describe as an inevitable outcome.
In so much as the dollar was expected to fall, the strong gains in risk appetite could be tempered by various fundamentals from which the US elections have distracted investors from.
Therefore, and without necessarily presuming that the rally in gold, for the near-term, is over, it does justify the case for a downside correction for which rewards prudent bulls a discount in catching the next bullish impulse.
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