Gold falls on safe haven outflows.
Gold continues to fall as the traders are selling gold to pursue more lucrative trading opportunities elsewhere. The U.S. Treasury yields resumed their advance today and global equities also firmed, reducing the appeal of safe-haven bullion. With the global equity markets stable and retaining the moderate risk-on mood – amid hopes the economies will continue to recover as the mass vaccinations are starting to slash the rates of infections worldwide – the investors are slowing but steadily moving out of gold. Greater U.S. stimulus raises the prospect of an earlier than planned Fed rate hike – which is also negative for gold. Recent breakout of the key support 1765.00 is also driving technical oriented selling across the board.
Expect sellers on upward corrections.
Next support to watch – 1670.00
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