The cost of gold during the trading session on Tuesday fell to $ 1,800 per troy ounce, having lost about 2% during the day. The XAU / USD pair was last quoted at this mark in July 2020.
The pressure on "safe" gold was exerted by the growth of optimism after the announcement of Donald Trump about the beginning of the transfer of power to the Joe Biden administration. He instructed the General Services Administration (GSA) and his team to "do what it takes" on the initial protocols to hand over power to Biden of the Democratic Party. According to the American leader, he made such a decision in the interests of the country. In addition, market participants expect the start of mass vaccination of the population, given how many companies have announced the high effectiveness of their drugs against coronavirus. Last Monday, AstraZeneca and the University of Oxford released promising results from Phase 3 trials of the COVID-19 vaccine. Although the different efficacy figures depending on the dosage have caused some confusion, the markets are now more optimistic. Recall that the vaccine from the University of Oxford is the third of three vaccines, which will receive permission for mass vaccination in the very near future.
Despite the current decline, gold is still of great interest for long-term buying. First of all, it is worth noting the latest news about the possible appointment of former Fed Chairman Janet Yellen to the post of US Treasury Secretary. Yellen is in favor of further active stimulation of the American economy, so it is expected that budget spending will rise markedly with the start of her work. Moreover, there is a high probability that Yellen will actively seek new measures of state aid for enterprises and households on the very first day after taking office. In such circumstances, gold will be the best insurance against potential inflation growth. The weakness of the dollar may also support gold at any moment. The American currency index is currently testing a multi-month low at 92.00.
XAU / USD BuyLimit $ 1800 TP $ 1910 SL $ 1775
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