Gold is on a Bearish Trend


Gold prices are set to extend the bearish momentum according to the IG Client Sentiment Index amidst a shift in fundamental narrative.

The upbeat outlook on economic rebound and multiple vaccines preparing for mass distribution proved to be a double whammy for gold prices as investors started moving towards riskier assets.
The price of gold continues to hover around $1800. If this global market optimism continues, then the bright metal may go down to the 1750 level. In contrast, if the market bulls extend the recovery momentum, then the price may move up to 1851.

The Dow Jones took a few steps backwards from its record high of 30,000.
The EURUSD is currently hovering around 1.19. Acceptance above this level would initiate strong buying pressure, in which case, the next level to look for would be somewhere near 1.23. Failure to maintain the price above 1.19 would bring it down to the next support level, which is 1.18.

The unenthusiastic US macroeconomic data and Brexit issues are seen as the major reasons for the fading market optimism. US Dollar could not make any gains against any of its rivals even though it could manage to prevent any critical breakouts.

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