Gold price crash

Gold price crashed from 2070$ to test 1880$ yesterday. Brutal crash in gold price catalyst by Russian vaccine announcement. Russia announced, they have registered world’s first corona virus vaccine. Russian president Putin also informed that his daughter also received the shot and its completely safe.

Second reason was Trump’s statement that he is seriously considering to reduce capital tax gains. This also gave boost to DJIA index as it tested 28000. Dollar Index also recovered from lows which accelerated the sellers in precious metals pack. Investors also rushed to book their profits and contributed in selling of metals.

Gold price settled below 1900$ yesterday but quickly rebounded from lows and now trading at 1930$. Brutal selling from 2018$ to 1900$ changed the weekly chart of gold and many time frames already entered in weak zone. However corona virus rising cases could contribute in buying for gold but still I would be uncomfortable in buying for now.

Many countries are already in phase 3 for covid 19 vaccine and as far as media report suggests. We should be getting a vaccine for corona by this year end. If world get proper vaccine from US, India or any other country then we may see more panic in xauusd prices.

US job numbers also improved last week. Non farm payroll numbers came at 176K vs 153K expectations and even unemployment rate from 11.1% previous to 10.20% . Unemployment rate contributed the most in gold selling as expectations was just 10.5%. Better than expectations in job numbers brighten the chances of recovery in US economy. Which would impact gold prices further.

Currently gold price trading at 1930$. Good support in xauusd chart stands at 1870$. If price break and close below 1870$ then expect more pressure till 1830$ – 1800$.

Resistance in gold chart stands at 2020$. If trader break and close above 2020$. Then expect fresh buying from gold buyers till 2100$- 2220$.

Conclusion: Current trend has changed from positive to negative so I would not recommend any buying. Watch out for major data for levels & keep an eye on my youtube channel for daily gold analysis.

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By marafat