On Friday (November 20) in the Asian session, the DOLLAR index was little changed, now at around 92.30; Spot gold continued to come under pressure, trading at around $1,864 an ounce. Analysts noted that positive coronavirus news earlier this week continued to put downward pressure on gold prices, and that gold’s technical pattern was a “dead end” that could signal the risk of further declines in the future. Still, expectations of more U.S. economic stimulus and uncertainty about the U.S. election continue to give gold some support.
Gold prices fell on Thursday as progress on a coVID-19 vaccine boosted hopes for a faster economic rebound and reduced bets on an immediate US coronavirus rescue plan. Spot gold closed at $1,866.76 an ounce, down $5.01, or 0.27 percent.
Pfizer announced on Wednesday that a vaccine it developed with BioNTech, a German biotechnology company, was 95 per cent effective in the final analysis of data from clinical trials and met the requirements for emergency licensing. Optimism about vaccine progress has dented gold’s appeal.
“Vaccines remove some of the long-term uncertainty about the virus,” says Jeffrey Sica, founder of Circle Alternative Investments. So while there are concerns about the short-term impact of the surge in coVID-19 cases, in the long term there is more optimism and that is probably why we are seeing a pullback in gold prices.”
Jim Wyckoff, a senior analyst at Kitco Metals, said: “We are concerned about the current COVID-19 outbreak, but we also hope that a vaccine will be available in a few months ‘time, so this is driving some of the market volatility.”
ABN AMRO currency and precious metals strategist Georgette Boele said in a report released Wednesday that gold’s move could depend entirely on how expectations of potential vaccines affect future economic growth.
Zaner Metals analysts noted that despite an “explosive” increase in the number of new us confirmations, positive news from vaccines continued to dilute the precious metal’s safe-haven sentiment, preventing further gains.
Kyle Rodda, analyst at IG Markets, said: “There is a lack of catalysts for gold to move higher. There has been a slight dampening of inflation expectations, which has weighed on gold prices as it is now clear that fiscal stimulus in the US may not be as big as previously thought.”
Technical also bearish gold trend. Gary Wagner, an analyst at Thegoldforcast in New York, said there was a “dead end” in the gold market, meaning further declines were likely. Gold’s 50-day moving average has fallen below its 100-day moving average, a bearish signal from a technical point of view.
Gold prices fell sharply on Thursday and at one point tested $1,860.90 an ounce, according to Economies.com, a leading financial website. Investors need to be wary of afternoon trading. If gold were effectively to break below $1,860.90 an ounce, this would halt the recent bullish scenario and push prices even lower, targeting $1,794.84 an ounce.
Gold needs to consolidate above $1,860.90 an ounce to continue its bullish trend for some time to come, with the first target at $1,901.80, According to Economies.com.
Naeem Aslam, chief market analyst at AvaTrade, said gold had failed to gain much support this week even as the dollar weakened broadly, suggesting investors were starting to move away from safe-haven assets and toward riskier assets.
Still, expectations that the U.S. will provide more stimulus to boost the economy remain supportive.
“We are not out of the woods yet and need more stimulus, which seems to be providing some support for gold prices,” said Edward Meir, an analyst at ED&F Man Capital Markets. Gold tends to benefit from economic stimulus because it is seen as a hedge against inflation and currency depreciation.
Senate Democratic Leader Chuck Schumer said Thursday that Republican Majority Leader Mitch McConnell has agreed to resume coVID-19 rescue talks in the face of a surge in coVID-19 cases, CNBC reported.
Biden wins Recount In Georgia Biden: Prosecuting the Trump Administration is not ruled out
In the US presidential election, officials in Georgia said a manual recount has been completed to confirm Democratic presidential candidate Joe Biden as the winner.
Brad Raffensperger, Georgia’s secretary of state, said the results of the manual count were “barely different” from previous counts. “The results are very close to what we reported on election night,” Mr Ravenspanger told LOCAL television station WSB-TV. The state of Georgia will certify Biden as the winner on Friday, local time, Lafensperger said.
“The review confirms that the original machine count accurately reflects the winner of the election,” the Georgia Secretary of State’s office said in a statement late Thursday local time.
Georgia is a key battleground state in the 2020 U.S. presidential election. Georgia has 16 electoral college votes and last voted for a Democratic presidential candidate in 1992.
Although the official results of the U.S. presidential election will be announced in December, the mainstream American media is already predicting That Joe Biden will win the White House, according to the latest report by Sputnik news. Mr Trump’s campaign is still protesting, alleging “electoral fraud”.
Joe Biden, the Us Democratic presidential candidate, said on Thursday he would not rule out filing charges against the Trump Administration and the General Services Administration. One of the GSA’s many duties is to approve the transfer of power.
Commenting on the GSA’s failure to recognise that the Biden-Harris ticket had won in 2020, Mr Biden said the delay had prevented his team from obtaining information from “various agencies”.
Mr. Biden said he was not concerned that Mr. Trump’s refusal to back down would impede the transfer of power, but noted that Mr. Trump’s actions sent damaging messages about the workings of democracy to the rest of the world.
Mr. Trump has continued to reject the preliminary results, repeatedly claiming that he won the election. Mr. Trump’s campaign has claimed “massive” electoral fraud and filed multiple lawsuits in several key states to stop counting “illegal votes”. The General Services Administration, which oversees the transition, has yet to declare Biden the winner.