SMM News: after the sharp fall overnight, the gold market once again returned to the level of about 1890 US dollars / oz, and the rebound of the US dollar put gold under pressure.
(Commerzbank), a German commercial bank, said that the fall below the support level of 1900 showed that the gold market was still not able to get rid of the area near this level.
Daniel Briesemann, an analyst at the bank, pointed out that the cooling of expectations for a new round of stimulus programs in the United States put gold under pressure.
"members of the US House of Representatives have been informed that there will be no new developments on this issue this week, so there is unlikely to be a stimulus package before the US election."
That gave the dollar a boost, which depressed gold.
"however, the signs of the epidemic in the United States is one of the reasons why gold will not fall sharply, and the news of the vaccine is also affecting the market, bringing a lot of uncertainty."
George Gero, general manager of Royal Bank of Canada Wealth Management (RBC Wealth Management), said the recent volatility in the gold market has hindered the gold price from rebounding to $2000 an ounce.
"the regional volatility of gold prices around $1900 / oz indicates that its volatility will continue and the recovery to $2000 / oz will occur later than expected."
Gero noted that despite the current setback in gold prices, there are still expectations for a strong performance at the end of the year.
"the earnings season for U. S. stocks is coming, and the dollar is performing firmly. But as gold ETF holdings continue to increase, coupled with the bad news of vaccines in the United States, gold will be supported. "
There are also some geopolitical risk factors that continue to provide positive support for gold, Gero said.
Despite the sharp fall in gold prices on Tuesday, the number of outstanding contracts remains at 558222 hands, basically unchanged.
