Gold Price Forecast – Bullish Price Action Dominates, Brace for a Buy!
Arslan Butt • 3 min read
During Monday’s early Asian trading session, the precious metal gold failed to stop its previous day’s negative performance. It remained depressed around the $1,770 level due to the upbeat market sentiment, triggered by the optimism over a recovery in global economics. Meanwhile, the recent positive earnings from the key U.S. companies put some additional positive impact on the market trading sentiment, which tends to undermine the safe haven metal prices. Hence, the positive risk sentiment was seen as one of the key factors that weighed on the yellow metal.
Across the ocean, the prevalent bullish bias surrounding the U.S. dollar has also played its crucial role in weakening the bullion prices as the price of GOLD is inversely related to the price of the U.S. dollar. Moreover, the losses in the gold prices were further bolstered by the continuous progress over U.S. President Joe Biden’s stimulus packages. Conversely, the ever-increasing COVID-19 cases in some countries such as India, Japan, and Brazil keep raising doubts over the global economic recovery from the pandemic, which in turn helps the safe haven metal to limit its deeper losses, at least for now. Meanwhile, the slowing pace of growth in the Chinese manufacturing sector also weighs on the market sentiment, which was also seen as one of the key factors that capped any meaningful upside for gold. As of writing, the yellow metal price is trading at 1,768.95 and consolidating in the range between 1,766.19 and 1,769.17.