Notice that in November gold is playing in range between $1965 to $1850.

On November 09, 2020 gold price down around 100$ in a night showing the momentum of seller against buyer because of the vaccine tested highly effective for COVID 19 has been announced. The COVID-19 vaccine expectation has impacted the outlook for gold. But before that, the economy was already regaining its strength in fits and starts. China is leading the way to global economic recovery.

In the market, we notice that investors hesitate about the future growth of the precious metals and it may affect the price of gold to slow down. Even the big player like Warren Buffett, the CEO of Berkshire Hathaway also offloaded some of his gold investments recently and it shows the best time for gold might be behind US. Investors throughout the world seem to emulate Buffett’s investing style. If Berkshire Hathaway sells gold, not many will think about buying it. Most of the investors do not expect the future of gold to remain as bright as it has been earlier in the year. Also, the United States is expected to experience some healthy growth in 2021, which may put more pressure on the price of gold for long term trading.

For technical analysis, trader should wait to sell XAUUSD at resistance zone around $1890-$1900 and put stop loss function at $1910-$1915$. Notice that $1850 is the strong support that XAUUSD have been testing for several times. Therefore, trader should pay attention if that strong support can break down in the future it can be the beginning of down trend for long term trading. Next strong support zone around $1820-$1800.

Analysed by: Mr. Chhea Chhayheng,Independent Analyst