Gold Slips as Dollar Gains

Gold on slips more than 1.50% and break 4 weeks low on Wednesday mainly due to increased uncertainty about rising COVID-19 cases in Europe and U.S. presidential elections to be held on 3 November 2020.

Spot Gold has fallen by 1.75% to $1870.80 per ounce.

There are still so much concern and uncertainty related to COVID-19 and the possibilities of renewed lockdowns in Europe has send a panic wave across the markets. In response to this Dollar is gaining attention and stock markets along with Gold are looking under pressure.

On downside gold spot has support at $1848 level, if this level is broken the we may see panic selling up to $1805 levels.

On the contrary safe-haven dollar surge by almost 0.8% whereas all major stock market indices are down by more than 1.50%.

Gold is considered a hedge against inflation and currency debasement and has appreciated by more than 23% in this year and made a life time high of $2074.88 per ounce.


Sandesh Nandode, Forex and Crypto Analyst.
Published, Oct 28 2020, 09:00 PM IST

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