Thursday, November 12, 2020

XAU / USD Analysis - Not a Good Week for Gold Investors

 The movement of the gold price against the US dollar on the XAU / USD chart shows that the price is falling but at a slower rate than the fall earlier in the week.

The price rise again after reaching the low of 1850.00 support failed to reach the 1900.00 concentration level.

Instead the price continues to press back to the support level of 1850.00 on trades heading towards the weekend.

After the initial reaction of investors over the holdings of safe-haven assets, the positive sentiment of the vaccine was affected by the continuing increase in cases of Coronavirus infection.

Investors await the further development of the vaccine to continue to place confidence in the global economic recovery affected by the previous pandemic crisis.

Continued investor confidence will keep the gold price lower with expectations below the 1850.00 support level this week.

The target of further declining destinations is to the focus level of 1800.00 after the price increase passed above that level last July.

However, if the price manages to make a rise again, the level of 1900.00 will return to the focus for investors to evaluate the price reaction in the zone for further movement signals.

Rising prices will be higher if the development of negative vaccine reports returns which starts to raise market concerns.