Listen to the latest market mood for the XAUUSD.
Gold has continued to track lower over the last couple of weeks and the next medium-term support level below is at $1750. US interest rates set to remain low over the next three years, large levels of QE from the FED, new US fiscal stimulus approaching and strong demand from Chinese Lunar New Year, should all support gold into year-end and early 2021.
Therefore expect XAUUSD buyers from $1750.
- The main risk to this trade is if there is heavy equity selling on month-end flows or risk-off trading on rising COVID-19 lockdowns.
- Watch out for further heavy gold outflow from ETFs spilling over into the spot gold market.