The breakdown of the support level of $1,850 has damaged the medium-term trend for gold, opening space for further correction. Positive news regarding COVID-19 vaccines has pushed investors to bet on riskier assets, temporarily reducing their exposure to gold.
With US markets working shorter hours today due to the Thanksgiving long weekend, there are good chances of seeing a relatively quiet trading session with the bullion price moving laterally in the range of the last few days between $1,800 and $1,810. A decline below $1,800 could trigger new selling of the yellow metal, although any return to risk-off strategy together with a weaker dollar would boost gold. For the time being the price is steady, just a few dollars above the four-month low.
