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GOLD overview 16.02.2021

Gold falls on wider market optimism.

Gold continues to decline after global shares hit record highs today and are on track for their longest winning streak in 17 years as investors are expecting the rollout of COVID-19 vaccines globally will lead to a sustained economic recovery and will soon lead to the wide scale easing of the lockdown restrictions. As a result of this gold and silver mutual funds and ETFs saws the biggest outflows in three months at the start of February (which is pressuring gold) as investors put their money into soaring equities and higher-yielding bond markets. The outflows from precious metal funds came as the U.S. Treasury yields hit an over 6-month high, on hopes large stimulus measures under Biden’s administration will accelerate the country’s economic growth.

Expect sellers on upward corrections.

Next support to watch – 1784.00

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