After a drastic drop in gold prices earlier this week following news of vaccine effectiveness testing, price movements began to be seen flat.
On the XAU / USD price chart which measures the movement of the gold price, after reaching the downtrend of 1850.00, the price is starting to move to make a rise again.
However, the price remains below the 1900.00 price level which still signals a bearish trend.
After the initial reaction of investors to the vaccine report, investors are likely to be wary of waiting for further development of the vaccine whether it is almost available for general use.
The positive momentum is fading again with investors' continued concerns over the increasing number of daily pandemic infections.
Although the vaccine is rumored to be available as early as December, there are still uncertainties such as issues of production, supply and distribution. Investors also expect other vaccine production test reports to be positive in the near future.
If sentiment continues to be positive and investor confidence increases, safe-haven assets such as gold are expected to continue to decline.
The price of gold can fall back to the support level of 1850.00 or even lower towards the price zone of 1800.00.
However, be wary of a price increase again. The 1900.00 level will be a resistance and if the price manages to break through it, higher focus zones such as 1910.00 and 1938.00 will return to the price target destination.
