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Gold drops after US vaccine approval news

On Monday morning, the gold price is going down. Investors are avoiding gold amid positive news about the COVID-19 vaccine. Increased risk appetite is offsetting support from a weaker dollar and hopes that the US may approve a new stimulus package soon.

 

On December 11, the US Food and Drug Administration (FDA) granted emergency use of the BNT162b2 vaccine, co-developed by Pfizer and BioNTech SE.

 

A $ 908 billion bill for the fight against coronavirus, which was being developed by a bipartisan commission, is expected to be presented today. It is reported that the package could be split in two to increase its chances of approval by both Democrats and Republicans.

 

Gold and other protective assets were also negatively affected by news from Europe. On Sunday, the leaders of Britain and the EU agreed to extend trade talks. Despite general skepticism, the very fact of the extension of the trade negotiations remains a chance for a trade agreement.

 

There are no important events on the economic calendar today. Investors will be preparing for the two-day FOMC meeting, which ends on Wednesday.

 

On the chart, the initiative went back to the sellers. Quotes are dropping to support at the level of 1824.00. Today we can expect a breakdown of this mark and a decline in quotations to 1810.00.

 

  • Resistance levels: 1857.00, 1870.00, 1884.00.

 

  • Support levels: 1824.00, 1810.00, 1780.00.

 

The main scenario is a breakdown of support at 1824.00 and a decline to 1810.00.

 

An alternative scenario is growth in the direction of 1857.00.

 

The current fundamental outlook is neutral. We consider shorts when the price rolls back to the 1845.00 area.

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