Gold surges on spiking COVID-19 cases.
Gold continues to rise sharply today – opening this year with the strong 2% rise – as the sharply rising Covid-19 cases are boosting its safe-haven appeal. The markets are coming to terms with the fact that the mass vaccination programmes started in Europe and USA – (most vaccines actually have to be administered twice with the interval of up to 4 weeks) – will not be able to stop the spread the coronavirus in the near term and will not avert the likely stricter restrictions and lockdowns in in Europe and USA. Doubts about fast global economic recovery also rose after a business survey showed the pace of expansion in China’s industrial sector slowed in December – which added to the risk-off sentiment and to gold longs.
Expect buyers on downward corrections.
Next resistance to watch – 1965.00 (November high)
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