Trading | 5 months ago
Gold prices is continuously falling from last three days. On Monday gold price fell by 1.20% and on Tuesday gold price fell by 1.59%. Currently gold is trading beneath the $1,700 support level. Gold price was supported by the bullish investors at this support level of $1,700 but since the Dollar Index created a new high which put fresh pressure on gold.
The U.S. dollar index (USDX) is a measure of the value of the U.S. dollar relative to the value of a basket of currencies of the majority of the U.S.'s most significant trading partners. Gold is again trading in downtrend. It is currently trading in red zone across many sessions due to the fresh COVID-19 lockdown measures which was introduced across major European and Asian countries.
Successful and effective vaccine rollout program and $4 trillion in infrastructure spending from the President Biden administration in USA is encouraging the investors that the United states economy will recover much faster than expected. Gold and US dollar is inversely correlated. So, whenever the value of US dollar increases relative to other currencies around the world including EURO, YEN, GBP etc., the price of gold tends to fall. France, Germany and other European countries and few Asian Countries has introduced an extended lockdown till April 2021 due to the highly contagious variants of COVID-19.
Currently gold is trading at $1685, which is also an important support level for gold. Gold Price is about to receive a very important bullish signal at the end of this month. One must look for short-term buying opportunities in gold at this price.
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