Gold Price Analysis: XAU/USD can ignore US dollar bounce on the way to $1,900 – Confluence Detector
Although gold prices snap two-day winning streak while declining 0.21% to $1,889.50 during early Thursday, it’s the ability to stay beyond the key support near $1,887/88 keeps the buyers hopeful.
The yellow metal recently dropped after the US dollar index (DXY) bounced off the lowest since April 2018, flashed early in Asia. The DXY currently takes rounds to 89.64, up 0.04% on a day, following its extended south-run to 89.51 before a few minutes.
Outlook 2021: Supply/demand fundamentals for precious metals
The supply and demand fundamentals for precious metals markets got thrown into disarray this year, leading to heightened volatility – first on the downside, then on the upside.
Although gold and silver will finish 2020 below their highs for the year, gold is still headed for an annual return of close to 25%; silver around 45%. Can hard assets investors look forward to further price appreciation in 2021? Yes, but…there are some near-term risks to the favorable long-term supply/demand outlook.
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