Trading | 4 months ago
The bullish momentum which was present in the gold last week, seems to be missing in this week. Gold is stuck due to the massive surge in the demand of cryptocurrencies like Bitcoin, Ethereum etc. Gold price does not seem to be responding to the other commodity prices momentum. According to the recent chart patterns of gold, it looks like that some of the hedge funds have a short position in gold.
Price movements in the spot price of gold are very important to traders and fund managers of any hedge funds. The spot price of gold is currently trading at $1771.48 falling by $5.33, or 0.3% as compared to yesterday. Gold price gets heavily affected by the U.S. Federal Reserve's policy decisions, short term and long-term outlook on the economy as well as the global central bank's decision on interest rates.
Gold (XAU/USD) price fell to the fresh one-week low of $1766.54 during today's trading session. However, whenever there is an economic uncertainty, investors opt for gold as compared to the country's currency or stocks. Currently investors are worried that the continuous surge of COVID-19 infections in countries like India, Germany, France etc. could slow down the global economic recovery.
This economic uncertainty will lend some support to the XAU/USD in the upcoming days. Many technical indicators indicate that XAU/USD pair is trading in the bullish territory. Therefore, one must look for buying opportunities in gold (XAU/USD).
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