Gold Price Forecast – 50 EMA Crossover; Can we Expect a Sell Trade?
Arslan Butt • 3 min read
During Wednesday’s Asian trading session, the safe haven metal, gold, managed to stop its decline of the previous day, drawing some modest bids around the $1,900 level, as the latest hike in the number of infections with the COVID-19 Delta variant in the UK has prompted the British government to delay the ending of lockdown measures, which in turn is weighing on the market trading sentiment.
The prevalent buying bias in GOLD was mainly sponsored by the growing incidence of coronavirus cases and slower vaccination drives. As a result, the lockdown in the UK has been extended, and this had an instant bearish impact on the market mood. Moreover, the new bullish rally in gold was further bolstered by the ever-increasing geopolitical tensions and the less positive Chinese economic data that was released recently. Meanwhile, the uncertainty over US President Joe Biden’s infrastructure spending remains on the cards, amid anxiety over the Fed’s next moves. All of this favors the safe-haven assets.