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FX.co ★ Forecast of Gold for November 17, 2020: buy above 1,880 pivot point

Forecast of Gold for November 17, 2020: buy above 1,880 pivot point

The coronavirus vaccine is giving a renewed boost to the commodity market and increasing risk appetite, this is causing gold to lose interest of investors as a safe haven.

Yesterday the precious metal fell rapidly to the 1,865 area on the back of the vaccine hopes with a 94.5% effectiveness rate, thus boosting the risk-on mood and affecting gold.

At a technical level, we note that Gold is under downward pressure, at the zone below the EMA 200-day.

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On the other hand, there is a growing likelihood of a rapid exit from the covid crisis through the invention of a vaccine. This means that less fiscal and monetary stimulus will be needed. In turn, the precious metal would have less force to rise.

Gold has been trapped in a trading range with a slight uptrend from the 1,850 psychological level low and 1,903 resistance.

If the lights of hope are extinguished, it could strengthen Gold, only if it surpasses the psychological level of 1,906 with targets at 1,921 and 1,937.

Conversely, a break below $ 1,850 could push the price down to the weekly support of 1,837 and 1,817.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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