SMM News: Dutch International Group (ING) said investors are evaluating the impact of the vaccine.
"for now, this factor could turn the market into a zero-sum game, and risk sentiment is likely to stabilize further as the US Thanksgiving holiday approaches this week."
The bank said that with the development of the epidemic in the United States, more regional closures may prompt the US government to launch stimulus programs more quickly. But the additional damage to the US economy caused by such a measure can be dangerous.
"the number of infections is increasing all over the United States, and stricter measures have been announced in many places. While these measures are effective, it is difficult to stop the continued outbreak in the United States, especially on Thanksgiving, when families traditionally get together. "
Afshin Nabavi, senior vice chairman of MKS SA, believes that gold prices may rise more than fall this week.
"recently, gold prices have remained in the range of 1950 to 1900 US dollars per ounce, and gold prices have not yet broken through the shock zone."
Standard Chartered Bank (Standard Chartered) precious metals analyst Suki Cooper pointed out that gold has been under pressure since the vaccine news, but found support around 1865 US dollars / ounce.
Gold ETF also sold off due to lower gold prices.
Cooper pointed out that the biggest risk for the gold market is the acceleration of the net outflow of gold ETF, which is a key factor to pay attention to.
"the previous gold price correction saw a net outflow of about 20 tonnes, but it has outflowed almost 50 tonnes since November, which will be its worst month since April 2019."
Daniel Pavilonis, a commodities broker at RJO Futures, pointed out that gold prices are unlikely to break through until the US stimulus package is confirmed.
Cooper said that for those gold bulls, gold falling below $1860 an ounce would be a bargain buying time.
Walsh Trading's John Weyer said gold could fall to $1820 an ounce this week.
"after that, it might be better to do more. By January and February next year, gold prices will be able to return above the 2000 mark, and influential factors are needed to push gold prices higher than the current region. "
