3rd Dec. - Gold prices soared again this week, as we had expected in an analysis that was shared last week. After falling sharply to the level of $ 1765.00, the price returned to the level of $ 1835.00 as of today.
The sharp decline in gold over the past 2-3 months stems from market optimism over the recovery of global economic activity following the discovery of vaccines for the Covid-19 pandemic.
Several countries have announced preparations to buy and at the same time provide Covid-19 vaccine injections to their citizens. Among the first to take proactive steps in the initiative was the United Kingdom and was the first country from Europe to announce that it would start adopting vaccines released by Pfizer and BioNTech.
News of the vaccine contributed to the fall in gold, but this week gold prices recovered slightly as the situation in the United States did not help strengthen the US Dollar. The US Dollar has fallen to its lowest level in the last 2 years as US Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi have not held any talks on economic stimulus plans since last month's presidential election.
The ISM Manufacturing PMI economic data also did not help strengthen the US Dollar when it reported fell from 59.3 to 57.5. A cautious statement by Federal Reserve Chairman Jerome Powell indicates that the US economic situation is still in the early stages of recovery.
The situation as described above caused the weakness of the US Dollar this week, thus affecting the value of gold. Gold prices are rising again.
However, we expect another fall as market optimism over the Covid-19 vaccine will dominate gold market sentiment in the near future.
AHMAD FAIZUDDIN BIN RAZALI
CHIEF ANALYST OF CDG GLOBAL
GOLD PRICES RISE AGAIN, BUT THERE IS STILL A FALL ROOM TO APPLY TO THE $ 1700.00 LEVEL FOLLOWING NEWS ABOUT VACCINES APPEARING AGAIN
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