yellow metal south.” data-reactid=”19″>Although the yellow metal is still far from its major support level around $1800, which presently is a long way down, however a breach below the $1900 support level again could encourage Gold bears to keep the price of the yellow metal south.
The precious metal continues to struggle with liquidity issues that seem to be getting magnified by summer trading situations.
Gold traders will keep their bullish bets around the $1875-1925 price level as the global economy still faces a host of problems suggesting more stimulus packages, relatively lower yields, and lower interest rates will continue to be the norm in the mid-term.” data-reactid=”21″>However it is expected that Gold traders will keep their bullish bets around the $1875-1925 price level as the global economy still faces a host of problems suggesting more stimulus packages, relatively lower yields, and lower interest rates will continue to be the norm in the mid-term.
Although a COVID-19 vaccine cure would certainly send gold price plunging below the $1800 level.
The high sell-offs recorded on Tuesday at the precious metal market because of Russia’s registered COVID-19 vaccine revealed how such macro could be a game-changer as yields went higher and possibly triggering global central banks to pull back on their quantitative easing programs.
In addition, as gold bulls try to rebound from their record losses after Tuesday’s free fall, there is still chance inflation could go upside before the U.S Federal Reserve explicitly target inflation. These could provide the yellow metal some stability over the long term.
Whether or not the yellow metal can regain its bullish momentum will most likely depend on whether there is more room for downside in real yields or more quantitative easing programs by the US Federal Reserve. Still, the possibility of a tightened price action remains in play after the U.S Bond market sent out the most explicit warning last week.
economic calendar .” data-reactid=”30″>For a look at all of today’s economic events, check out our economic calendar .
article was originally posted on FX Empire” data-reactid=”31″>This article was originally posted on FX Empire
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