Gold Price News: XAU/USD

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  • Gold lost 4.5% on the week, the worst week since late September.
  • The stops were triggered after gold broke the critical threshold of $ 1800.
  • Economic optimism fueled by the progress of the coronavirus vaccine hit gold.

Gold (XAU / USD) finally broke the critical support of $ 1800 on Friday, closing the week below that level for the first time since July 16.

The spot eroded 4.5% of its value during the week, registering the largest weekly decline since the end of September, while extending the correction from the all-time highs of $ 2,075 reached in August.

The bearish sentiment undermining gold can be attributed to hopes for a faster global economic recovery, thanks to the promising results of the coronavirus vaccine, which could likely bring life back to normal in 2021.

Wall Street stocks rallied to record highs due to possible faster economic turnaround and weighed heavily on non-performing gold. Market optimism lowers the chances of additional monetary and fiscal support.

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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