· Pfizer’s COVD-19 Vaccine weighs on Gold prices
Gold traders are presently under pressure and nursing their wounds amid news that Pfizer’s COVID-19 vaccine had proven 90% effective in trials has reported few days ago, sent the price of gold arbitrarily below the $1,900/ounce price levels
Digging deeper, into a key macro distorting gold prices is COVID-19 vaccine on bias that it pushed 10-year U.S Treasury yields to their highest point since COVID-19 pandemic started, meaning the surge in U.S Treasury yields and impressive gains recorded relatively in global stocks means it might just be a matter of few weeks for the precious metal to fall below the $1,800 price level.
This has kept gold traders bearish in the near term, on the bias that the precious metal is priced lower and not until a Joe Biden’s presidency comes to effect we might see the bullion metal trading below $1,800 price levels.
It would be unfair ruling out gold bulls as the mother of all stimulus packages seem to be on its way, judging by reports on the blue party’s economic agenda in bailing out a fragile economy battered by COVID-19 virus, means gold prices could recover remarkably after the end of January 2021.
However if the COVID-19 vaccine plus the stimulus deal creates a reflationary impulse not seen before, the U.S central bank might have no option but to lift interest rates earlier than expected, meaning gold investors might have a lot to battle for, as prices could tank below $1500/ounce in the long term.
· Gold spot intraday: Choppy
Pivot (invalidation): 1881.00
Our preference
Short positions below 1881.00 with targets at 1850.00 & 1839.00 in extension.
Alternative scenario
Above 1881.00 look for further upside with 1891.00 & 1905.00 as targets.
Comment
As Long as 1881.00 is resistance, look for choppy price action with a bearish bias.
Silver spot: Choppy
Pivot (invalidation): 24.4300
Our preference
Short positions below 24.4300 with targets at 23.7500 & 23.5500 in extension.
Alternative scenario
Above 24.4300 look for further upside with 24.7800 & 25.0500 as targets.
Comment
As Long as 24.4300 is resistance, look for choppy price action with a bearish bias.
Reference: FXStreet, FXEmpire
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