The gold price is higher by 0.17% on Wednesday but this is just a small bounce after a tumble from the stubborn support at $1863. Gold now trades at the $1800 level with a risk of further breakdown ahead.
Gold is suffering from a drop in demand for safe havens and higher flows into Bitcoin. The recent emergence of virus candidates has seen investors looking beyond the current lockdowns and economic issues. In France and the U.K., governments are set to relax the latest restrictions in early-December. Traders are hoping that the virus will have receded going into the release of a vaccine.
Gold has been part of a recent narrative that sees gold investors in ETFs rotating out to Bitcoin. The foundation of gold’s 2020 move higher has started to recede as the end of lockdown measures would limit further economic damage and would also see government’s needing less spending and stimulus measures.
Gold Price Technical Outlook
Gold broke down from stubborn support at $1863 and that led to a predictable waterfall moment to the $1800 level. The next support levels are at $1750 and $1700. The price may try to make a base at the current level over the next few days. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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Gold Price Daily Chart
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