Gold Price Prediction: Bouncing Off Support, Heading For $1,789?
Arslan Butt • 3 min read
Today in Asian trading hours, the safe haven metal managed to extend its previous session heavy run-up and remained bullish well above $1,780 marks. However, the prevalent buying bias was mainly sponsored by a coronavirus (COVID-19) resurgence, which dashes economic recovery hopes. The ever-increasing coronavirus cases in some major countries keep fueling the doubts over the economic recovery, which puts additional pressure on the market trading sentiment. The US-China and Russia-Ukraine tussle also played a significant role in undermining market trading sentiment, which lends further support to the safe haven metal.
Apart from this, the overall bearish tone surrounding the U.S. dollar tends to underpin the dollar-denominated commodity as the bearish U.S. dollar tends to make it cheaper for holders of other currencies to purchase the yellow metal. However, the U.S. dollar was being pressured by the speculations that the Fed will keep interest rates lower for an extended period. Conversely, the recently positive vaccine developments keep challenging the market’s risk-off sentiment, which was seen as one of the key factors that kept the lid on any additional gains in the yellow metal prices. As of writing, the yellow metal GOLD is trading at 1,780.45 and consolidating in the range between 1,776.35 and 1,784.76.