Gold Falls Into a Bearish Trend

24/11/2020

The XAUUSD has been testing the support level of 1850 USD since the beginning of November and has shown signs of a modest decline.
 

Progress in several vaccines for COVID-19 and stronger economic data are the driving factors behind gold’s bearish trend. Optimism rose with Pfizer sharing the efficacy analysis of the vaccine that it is developing. This positive development on the vaccine front put additional weight on gold. Similarly, strong US data showed signs of an economic recovery, leading to an appreciation in the USD, thus causing investors to drift away from the yellow metal.
 
Gold is now at four-month-lows lowest at 1838 USD which is an almost 2.5% fall from its starting price. Any decisive move below 1838 USD would attract sellers, dragging the pair down to 1810.

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