Gold Bugs Trigger Happy, Over U.S COVID-19 Stimulus Package, Brexit Deadlock

The yellow metal recorded significant gains at Monday’s trading session in London, strengthened concerns surrounding a successful Brexit deal, coupled with the fears of the new COVID-19 variant pushed the bullion metal above the $1,900/ounce price level.

Gold prices are also fired up on recent reports revealing US lawmakers are now on the same page in passing the $900 billion COVID-19 economic relief package after months of political chaos at Washington. U.S House leaders further disclosed they would vote on passing the deal today and the U.S Senate is looking likely to vote on the stimulus deal soon too helped in keeping gold prices above the $1,905/ounce level.

Gold bugs are riding fast, as prevailing price action show high volatility at today’s trading session in London.

It’s now looking like the Brexit deal might not get an approval anytime soon as this week’s holiday-shortened data docket looks to be filled might keep the gold bugs rally supported at least for the short term.

However, gold traders at the back of their minds traders understand the risks ahead amid the present official verdict revealing a Brexit deal might come in the mid-term which in turn could keep the gold bugs run tamed arbitrarily.

Also the U.S dollar index value of late has rebounded strongly meaning there is a huge demand for the safe-haven currency on market sentiments that any threats to a COVID-19 vaccine-led global recovery might be the most crucial dynamic for next year.

That said, recent price action reveals gold bugs are gaining a firm grip above last week’s high of $1896.29/ounce, meaning gold bears might be crushed in the near term as selling pressure carve a path for gold prices to challenge above the $1,915/ounce resistance level.