The gold price maintains a downward movement vector. For the first time since mid-June, quotes dropped to $ 1800. Investors are ditching defensive assets amid news of progress in the development of a vaccine for COVID-19 and the beginning of the transfer of power in the United States.
Recently the world stock indices renewed their historical highs. The Dow Jones Industrial Average broke the 30,000 mark for the first time. Investors are actively buying higher-yielding assets in the hope of a quick recovery in the global economy after the coronavirus pandemic is brought under control. The demand for safe haven assets continues to fall.
Amplifying the wave of optimism in the market are reports that the Donald Trump administration has begun the process of transferring power to the United States. Previously, many feared that Trump would drag out this process to the last, disrupting the work of the new president's administration after he officially took office. It’s important to note that Joe Biden's inauguration is due on January 20.
In the near future, the attention of investors will gradually shift to the debate regarding the adoption of a new program to stimulate the US economy. According to media reports, ex-Fed Chairman Janet Yellen may become the new US Treasury Secretary. She is considered a moderate economist and always strives to achieve economic balance. Quite large funds can be directed to the recovery of the US economy, which will lead to a decrease in the value of the dollar and, as a result, increase interest in gold
The economic calendar today will be dominated by news from the US. We are following the report on basic durable goods orders in the United States, interim GDP data for the 3rd quarter, weekly data on the labor market, the report on new home sales and the publication of the FOMC minutes.
Gold continues to move down. The price almost reached the previously indicated target at the level of 1793.00. This is a very strong support level, after testing it, we should expect the development of a corrective movement to the 1830.00 area.
The main scenario is a decline to 1793.00 and an upward rollback.
An alternative scenario is growth to 1830.00 from current levels.
The current fundamental outlook is negative. We consider shorts from the level of 1815.00.
Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]