Gold is trading in the green on Monday, despite the rise in major stock indexes. The US dollar remains the main benchmark for gold.
The market's focus is on news related to the US presidential election. Joe Biden is already celebrating the victory. He has already been congratulated by the prime ministers of Japan and Israel. Meanwhile, Donald Trump refuses to admit defeat and is preparing lawsuits to appeal the election results and demand a recount.
Biden announced that his team is working on a new relief package in connection with the development of the second wave of COVID-19. According to Reuters, the United States is the first country to record more than 10 million infections. On average, about 100,000 new infections are reported in the United States per day. More than 237,000 people have died from the disease in the country. According to Johns Hopkins University, the number of cases worldwide on November 9 exceeded 50 million.
Many experts have recently noted the unusual behavior of gold. The precious metal is very closely correlated with the stock market, although inverse correlation is common. This may be due to the fact that gold is again losing its status of the main defensive asset. There is an increased investor appetite for risk in the market, but the demand for precious metal is not weakening. Due to the decline in the value of the dollar, the demand for gold and other precious metals is growing steadily.
Today, there are no events in the economic calendar that could affect the dynamics of gold movement. Investors will focus on geopolitical news and the situation on stock markets.
The upward movement continues to develop on the chart, but today the price approached a fairly strong resistance level of 1967.00, from which a rollback movement can be expected. Therefore, buying an instrument should be considered only after the formation of a correction.
The main scenario - a rollback to 1930.00 and an increase in the direction of 1993.00.
An alternative scenario - a breakdown of resistance at 1967.00 and growth to 1993.00.
The current fundamental outlook is moderately positive. Longs are still relevant. We are looking for entry points near the 1930.00 mark.
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