Gold: Remains Under Pressure amid Subdued Investment Demand
George Lam November 18, 2020 1:35 PM
Spot gold remains under pressure as Covid-19 vaccine development continues to weigh on the precious metal.
Official data released on Tuesday showed that U.S. retail sales grew 0.3% on month in October, weaker than +0.5% expected. However, spot gold was still down 0.5%, as Covid-19 vaccine development continues to weigh on gold prices. Meanwhile, Bloomberg data showed that total know ETF holdings of gold dropped for a fourth straight session to 109.7 million troy ounce as of November 17 and below October's level.
From a technical point of view, spot gold remains under pressure as shown on the 1-hour chart. In fact, its previous rebound has failed to break above the 38.2% Fibonacci retracement resistance of the decline started from November 9. The level at $1,897 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,864 and $1,851 respectively.
Source: GAIN Capital, TradingView
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.