Gold Price Analysis: Bulls treading on thin ice at critical support
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.
Gold Price Analysis: XAU/USD ticks up to $1,860 after testing $1,850 support
Gold futures have headed south for the fourth consecutive day on Thursday, to test key support at $1,850, which, so far, remains intact as the pair bounced up to $1,860 area.
The unremitting growth of the second COVID-19 wave has returned to the spotlight after the US reported a death toll of 250,000 on Wednesday and New York City decided to close schools to curb the increase of contagions.
This news has offset investors’ optimism about the promising trial results of some coronavirus vaccines, reactivating concerns about the economic consequences of further lockdown measures and dampening the moderate risk appetite seen over the previous days.
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