In the Asian session on Friday (November 27), the DOLLAR index was basically stable, is now close to the 92 level, spot gold continued to fall in the short term, is currently trading around $1808 / ounce, has come down from near $1814 / ounce day high. Gold prices are still under pressure from this week’s positive news on the coVID-19 vaccine, with U.S. President Donald Trump saying delivery of the vaccine could begin as early as next week. Also bearish for gold is the reduced uncertainty surrounding the OUTCOME of the US election. On a technical level, $1,800 an ounce would be a key level, with further downside risks if it is breached.
Gold prices edged higher on Thursday as a surge in new coronavirus infections around the world raised doubts about a rapid economic recovery and added to the metal’s safe-haven appeal. However, positive news on the coVID-19 vaccine continued to weigh on the bulls, which took gold prices off their highs. Spot gold closed at $1,808.05 an ounce, having hit an intraday high of $1,817.85.
Gold rose on Thursday and briefly tested key resistance at $1,819.00 an ounce before falling back around that level, making the bearish scenario still valid, according to an article on the leading financial website Economies.com. From the 4-hour chart, the EMA 50 index is placing bearish pressure on gold prices.
With the outlook for gold continuing to be bearish, the first target is $1,794.84 an ounce, according to Economies.com, a level below which would open the way for a lower target of $1,765.00. Keeping gold below $1,819.00 and $18,30.00 an ounce is a key condition for continued bearish expectations.
The global epidemic continues to develop, and the situation in the United States has deteriorated in recent days. The continued spread of coVID-19 is helping to boost demand for gold.
World real-time statistics show that the cumulative number of confirmed cases of COVID-19 worldwide has exceeded 61.3 million, and the cumulative number of deaths has exceeded 1.437 million. In the United States, the number of confirmed cases of COVID-19 has exceeded 13.24 million, with more than 269,000 deaths.
According to new data released by the Atlantic’s National Epidemic Tracking Project, nearly 90,000 coVID-19 patients have been hospitalized in the United States, the highest number since the outbreak began.
The latest news on the epidemic! More than 13.24 million confirmed cases and more than 269,000 deaths were reported in the United States, with more than 1,200 new coronavirus deaths in a single day
Delivery of the coVID-19 vaccine could begin as early as next week, US President Donald Trump said on Nov 26. Mr Trump made the announcement in a video exchange with TROOPS stationed outside the US. Trump noted that those on the front lines, medical workers and the elderly will be the first to be vaccinated. Mr. Trump did not disclose which vaccine would be delivered first to the United States.
Astrazeneca, the British pharmaceutical giant, said on Monday that interim analysis of clinical trials showed that its coronavirus vaccine provided an average of 70 percent protection against the virus. Pfizer and Moderna have also reported a series of encouraging results from vaccine trials in recent weeks, with coVID-19 efficacy of about 95 percent. The introduction of the coVID-19 vaccine will boost economic performance and reduce demand for safe-haven gold.
Stephen Innes, chief global market strategist at Axi, a financial services company, said: “The vaccine news has greatly dented gold’s appeal and will continue to do so until we finally move from deflation to inflation.”
“As the Novel Coronavirus vaccine is unlikely to be widely distributed until the second half of 2021, central Banks are likely to remain accommodated,” ANZ analysts said in a note.
A recent report from CPM Group, a commodity consulting firm in New York, noted that gold’s decline may not end anytime soon. A fall to $1,650 should not be ruled out if the price then falls below a key level of $1,750, the report said.
Lachlan Shaw, head of commodities research at National Australia Bank, said the gold market had entered a new phase because of the vaccine news.
“If long-term real U.S. interest rates remain at current levels, it will be very difficult for gold to break back above $1900 and $2,000 an ounce,” Shaw said.
Trump: I’m leaving the senate after the election of Joe Biden
On November 23 local time, the General Services Administration (GSA) informed Biden that he could officially begin the transition. Expectations of a smooth transition for the White House have reduced uncertainty and undermined safe-haven demand for gold.
On November 25 local time, the State Department informed staff that the transition process had begun and that a team had been appointed within the Department to support the transition to the incoming Biden administration.
US President Donald Trump said on November 26 that Biden will leave the White House if he is declared the winner of the election by the Electoral College.
Asked if Biden would leave the White House on Inauguration Day, January 20, if the Electoral College votes to confirm him as the winner, Trump replied: “Of course I will. And you know it.” It was the closest Mr Trump has come to backing down.
But Mr. Trump added that if electors voted for Mr. Biden, “they made a mistake.”
The electoral College, which represents each state, will convene on December 14 and present their electoral votes to the President of the Senate and the National Archives; On January 6, Congress will convene a joint session to count the electoral votes and officially declare the electoral College vote.
Several U.S. media outlets estimate Biden won the November 3 election with 306 electoral votes, well over the required 270, while Trump won 232. With the votes counted so far, Biden leads Trump by more than 6 million in the popular vote.
So far, Mr. Trump has refused to recognize the results and has continued to say that the election was marred by widespread fraud and that he, not Mr. Biden, won. Mr Trump has said he will continue the lawsuit until he is sure that all votes cast on November 3rd are legal.
“There is no way Biden will get 80 million votes,” Trump tweeted on November 26. This was an election that was 100 percent rigged.” The tweet was immediately flagged by Twitter as controversial for its claims of election fraud.