Gold is trying to react after the selloff seen in the last few trading sessions. The new slowdown of the greenback is lifting bullion up, in a scenario still dominated by risk on, but where we can see a slowing down of the bullish pressure of last month. Some investors are thinking that markets are too optimistic about the chances of a recovery and perspectives for 2021, despite central banks’ stimulus. This could generate some profit taking on stocks and indices and be supportive for the gold price, although the short-term outlook remains weak for bullion after the break down of the key support level of $1,850.
