Gold Price Forecast – Three White Soldiers to Support Buying; A Quick Signal Update!
Arslan Butt • 3 min read
During Tuesday’s early Asian trading hours, the price of the yellow metal, gold, failed to maintain its bullish rally of the previous day. It edged lower, under the $1,900 level, possibly due to the continuous vaccination progress and the confidence among western policymakers’ regarding the reopening of economic activities, which positively impacted the market trading sentiment and undermined the safe-haven assets, including gold. On a different page, the bearish bias of the broad-based US dollar, which was triggered by a combination of factors, helped limit deeper losses, as the price of gold is inversely related to the price of the US dollar. Furthermore, the declines were also capped by the prevalent risk-off market mood, which tends to underpin the safe-haven gold prices.
However, the prevalent downbeat mood was under pressure from the cautious sentiment before the key sentiment on Thursday and trade/political tussles concerning China. This was seen as one of the key factors that kept a lid on any additional losses in the gold prices. At the time of writing, the yellow metal prices were trading at 1,898.64, and consolidating in the range between 1,898.40 and 1,899.62.