Gold Price Analysis: Bulls treading on thin ice at critical support


  • Gold bulls will need a lifeline fro the Fed as the price holds on by a thread.
  • Covid vaccine will ultimately be a boon for gold bugs, according to some analysts.

The price of the yellow metal is trading at $1,866.66 and has travelled between a low of $1,852.79 and a high of $1,874.11.

Gold has been under pressure in recent day's, falling from the $1,960s as investment flows to the yellow metal hit their biggest slump since the Covid-19 liquidations, despite a softer US dollar.

The precious metal is cascading to the deflationary forces from lockdowns and a reversal in safe-haven flows from the vaccine announcement, as noted by analysts at TD Securities. 

Record infection numbers have prompted US schools and businesses to close their shutters once again, thwarting the world's largest economy's recovery from the deepest recession since the Great Depression. 

With additional fiscal relief on the congressional back burner and investors looking to the Federal Reserve in December for signs it could step in with more monetary stimulus.   

''It is worth recalling that the driver of investment flows into precious metals has ultimately been sourced from a powerful impulse lower in real rates,'' the TD Securities analysts explained.

''In this lens, the vaccine will ultimately be a boon for gold bugs, helping strengthen inflation expectations without immediate implications for central bank policy.''

Gold levels

''While gold bugs are anxiously hoping prices hold north of the $1850/oz trendline, a break below could catalyze another positioning squeeze which would asymmetrically tilt the balance of risks to the upside,'' the analysts at TD Securities argued. 

XAU/USD

Overview
Today last price 1866.74
Today Daily Change -3.58
Today Daily Change % -0.19
Today daily open 1870.32
 
Trends
Daily SMA20 1892.63
Daily SMA50 1902.79
Daily SMA100 1907.86
Daily SMA200 1790.98
 
Levels
Previous Daily High 1884.9
Previous Daily Low 1863.86
Previous Weekly High 1965.58
Previous Weekly Low 1850.56
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1871.9
Daily Fibonacci 61.8% 1876.86
Daily Pivot Point S1 1861.15
Daily Pivot Point S2 1851.99
Daily Pivot Point S3 1840.11
Daily Pivot Point R1 1882.19
Daily Pivot Point R2 1894.07
Daily Pivot Point R3 1903.23

 

 

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