How is gold faring in the middle of risk-on season?
The elephant in the room needs to be addressed, which is the movement in the price of Gold over the past couple of months. It all started back in August where the Yellow Metal recorded an all time high of $2,075 before beginning a steady decline. Several reasons can be attributed to this decline, the first and foremost is the overbought conditions that Gold has been experiencing due to the Coronavirus pandemic and everyone’s flight to safety.
The other and more important reason is that vaccines are finally being made and that means we are one step closer to beating this virus once and for all. This has issued wide spread euphoria in the market as we saw all matter of risky instruments increase in value meaning that Gold is losing in value. Read more...
The buyers and sellers case for gold
Gold investors will be looking at the FOMC minutes very carefully on Wednesday. Gold traders will want to get a clue on gold’s near term direction. Gold has been sold recently on a firmer dollar and hope of a coronavirus vaccine. The optimism surrounding the Pfizer and BioNTech vaccine resulted in US10 year yields moving higher towards 1.00% around Nov 09. The news also prompted the biggest daily loss in gold futures in around 7 years. Since then there there has been strong outflows in ETF holdings.
A vaccine is on the way. This will precede a return to normality and a return to rising rates. In this view gold can be sold now as the crisis and gold’s long term appeal is over. Or if not over, certainly less appealing right now in the immediacy. Read more...
Gold Price Analysis: XAU/USD stages a modest recovery from multi-month lows
Gold edged higher during the early European session and was last seen trading near the top end of its daily range, just below the $1815 level.
The precious metal managed to find decent support near the $1800 mark, just ahead of a technically significant 200-day SMA and for now, seems to have stalled its recent downward trajectory. Sustained US dollar selling bias extended some support to the dollar-denominated commodity and prompted some short-covering amid near-term oversold conditions. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
EUR/USD hits fresh one-month low amid souring market mood
EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points.
GBP/USD retreats toward 1.36 amid fresh dollar strength
GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown.
Gold extends sideways grind near $1,850
The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.
Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed
Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative.
DXY breaks above key downtrend, eyes move above 91.00
USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.