Gold Prices Tumble; Traders Liquidate their Gold HoldingsGold bulls remain under intense pressure at the first trading session of the week in London.
The yellow metal is falling, as earlier anticipated buttressing the bearish trend now in play, taking into consideration that global investors are liquidating their safe haven assets and pouring such funds into riskier assets at record levels as global equities tick higher this morning at Asia and Europe.
Gold bulls present resolve seem damaged right now amid the precious metal prices recording its worst month in four years, as three promising COVID-19 vaccines have triggered global investors’ excitement and hopes that the worse is definitely over.
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At the time of drafting this report, Gold futures prices were down more than 0.7%, and traded below the $1,775/ounce support level, as it approaches the $1,750/ounce price area, hitting such level ($1,750/ounce) could trigger more selling pressure by gold bears riding as fast as the speed of light, taking into account gold prices as lost more than 5.1% November alone.
Sequel to the prevailing bearish trend taking it hold on the month of November, gold bugs had the price band wagon on for nearly a year as investors rushed in record levels investing in the precious metal due to the high geopolitical uncertainty and of course the worst pandemic known to humanity, but all changed few weeks ago, as risk-on investing bounced back in a big way. The yellow metal dropped through the $1,800/ounce mark on Friday and continued falling today.
It becomes fair to say gold bears are taking the grip, and hold the ace when considering the macro coming from COVID-19 vaccine drug makers, means the yellow metal could plunge aggressively amid a combination of liquidation from institutional funds like hedge funds ,gold backed ETFs and a lack of physical demand for the precious metal points to the recent price action ,hinting gold prices could drop below the $1750/ounce price level by the end of the week, except the U.S Fed Reserve chairman in his scheduled meeting with Congress this week, re-emphasize longer periods of low interest rates in supporting the world’s biggest economy, gold bulls call remains cut-off.
Indeed, the prevailing price action reveals if the $1750/ounce psychological and technical price area does not hold, the risk of a deeper correction could swell up more.