Gold: Vaccine Breakthrough Caused Fundamental Changes
George Lam November 10, 2020 2:43 AM
Spot gold tumbled 4.5% on Monday, the largest daily decline since August and wiped out all of its gains made last week.
From a technical point of view, spot gold's downside risks re-emerged as shown on the daily chart. A bearish evening star pattern may have formed in the past few session, where a breakthrough from the declining line may be proven to be a false break. The level at $1,921 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,848 and $1,775 respectively.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.