Listen to the latest market mood for the XAUUSD.

There are some important reasons for gold to remain supported over the medium / long term. Firstly, very low interest rates globally and the Fed’s dot plot doesn’t see any hike in rates for the next 3 years. Rate hikes are off the cards for now. Secondly, huge amounts of money are being printed by central banks around the world via their QE programmes. This all devalues currencies.Thirdly, their are poor returns expected in equity markets with many investors concerned that COVID-19 is going to hinder economic recovery for the medium term for many companies.

So medium term gold buyers may be tempted to take a nibble at a gold long here as price rejects the 100 Daily EMA.

Trade Risks:

• A vaccine will negate this outlook and inspire confidence for central banks to look at rising rates.
• Further equity selling will negate this outlook and result in gold falling lower into next support around $1800.