Gold Short Term: Modestly Rising

Spot gold has been modestly rising, as investors are weighing the resurgence of coronavirus infections against potential treatment for the virus.

Gold 3

U.S. coronavirus cases rose 2%, or about 56,000 on Sunday compared with the previous day, more than the seven-day average, according to Johns Hopkins University. Meanwhile, the World Health Organization also reported a one-day high in global Covid-19 infections over the weekend.


Spot gold has been modestly rising, as investors are weighing the resurgence of coronavirus infections against potential treatment for the virus. Last week, pharmaceutical giant Pfizer and German biotech company BioNTech announced early positive data of its Covid-19 vaccine and said they could possibly produce up to 100 million doses by the end of 2020.


From a technical point of view, spot gold remains on the upside as shown on the daily-chart, though has not yet accelerate its rally. In fact, it is holding up well after breaking above a 2-month consolidation range. Nevertheless, investors would have to notice that the daily RSI keeps showing a bearish divergence. The level at $1,715 might be considered as the nearest support, with prices trending to test the 1st and 2nd resistance $1,825 and $1,855 respectively. Alternatively, a break below $1,715 may trigger a deeper pull-back to test the next support at $1,675.

Source: TradingView, Gain Capital

More from Gold

From time to time, GAIN Capital Australia 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.