Tuesday, November 17, 2020

GOLD Analysis - Gold Prices Are Not So Steady, Is Saved By Vaccine Reports

 After the early week's move saw the price of gold drop below the $ 1900 mark, prices began to show a slight decline in the European session last night.

In the XAU / USD price chart, which measures the price of gold against the US dollar, it shows that the price has skyrocketed, thus removing the support level of 1875.00 with the lowest daily level recorded at around 1864.00.

But gold prices initially spiked in the New York session following reports that vaccines were again affecting the reaction of investors.

Moderna, becoming the second US pharmaceutical company, responded to a positive decision on the vaccine test within 1 week with the order for the Moderna vaccine reportedly reaching 94%.

The price again increased above the support level Moving Average 50 (MA50) on the frame of the 1 hour period gave an initial bullish signal for gold trading, but the price still did not succeed over the face of the 1900.00 hurdle.

Further development of the vaccine will be looked forward to adding more confidence to the breeders that the economic recovery will prevail in the nearest future if a vaccine becomes available.

Investors will be willing if the successful price rises over the 1900.00 level to set a higher level towards which the price is likely to go to the resistance zone at 1910.00 or higher at around 1938.00.

However if the price makes its initial decline, the price support profile is seen at 1875.00 before this onwards the support zone 1850.00 which was broken by the price at the early fall of last week.