Gold is back below $1,900. In September, it became clear that the price of 2064 USD reached in August was the maximum, and the rates will not be able to recover to this level, despite the further spread of the pandemic and problems in the US economy.
Joe Biden's victory in the election, and therefore good perspectives for the adoption of incentives for the US economy did not provide adequate support for gold. At the same time, news about the successful clinical trials of the vaccine by Pfizer brought down the price of gold by $100 in a few hours, but the recovery of the rates after that did not follow despite many questions about the timing of mass production of the vaccine, as well as its delivery and transportation (this vaccine should be stored at a temperature of -70 degrees, but no hospital in the world can yet provide such storage conditions). Another news against Gold was data on a 30% drop in demand in the third quarter of this year, due to the pandemic. Forecasts for the fourth quarter also aren't inspiring.
We believe that in this situation, gold will not be able to recover, and the downward trend formed in August will continue. We are waiting for the final results of the US election, new reports on testing the coronavirus vaccine from Pfizer and other manufacturers, as well as the start of mass vaccination, which may begin next year. All this will encourage investors to choose risky assets. Most technical analysis tools also tend to the deals to SELL in the near future.
