Price of Gold Fundamental Daily Forecast – Accommodative Central Bank Policies Providing Support

Gold futures are rebounding on Tuesday after plunging more than $90 or nearly 5% the previous session as investors shifted their focus back to continued monetary policy support from worldwide central banks to revive a pandemic-hit global economy. Gold tumbled on Monday as optimism for a COVID-19 vaccine lifted appetite for riskier assets.

At 13:47 GMT, December gold futures are trading $1873.30, up $18.90 or +1.02%. Steep Sell-off on Monday, but Bullish Issues Remain

Prices fell more than 5% at some point on Monday after U.S. drugmaker Pfizer Inc announced its COVID-19 vaccine was more than 90% effective based on initial trial results. The news fueled a repricing of assets as investors sold U.S. Treasury Bonds, bought equities and the U.S. Dollar. Interest rates spiked higher and demand for dollar-denominated gold fell.

Nonetheless, while vaccine optimism boosted risk appetite, concerns emerged over a mass roll-out of the new vaccine amid lingering […]

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