Gold fell below 1,800 US dollars, depressed optimism for economic recovery Page all

CHICAGO, KOMPAS.com – Gold fell below the psychological level of 1,800 US dollars at the end of trading Friday (27/11/2020) local time.

Gold prices were pressured by rising optimism about an economic recovery triggered by a speedy vaccine and a smooth White House transition prompting investors to turn to US equities.

The gold contract for February delivery (the most active new) on the COMEX division of the New York Exchange, fell 23.10 dollars, or 1.28 percent, to close at 1,788.10 dollars an ounce.

Also read: Down Rp. 9,000, Here Are Details of Antam’s Gold Price Today

Gold futures for December delivery, meanwhile, closed 23.60, or 1.30 percent lower, at $ 1,781.90 an ounce.

Gold futures have shed 4.5 percent in the week, marking the sharpest decline since the week ending September 25.

A falling US dollar index usually supports gold.

But market analysts believe it has no impact on the precious metal as investors have used the US dollar as a safe haven, which is similar to gold during the Covid-19 pandemic.

“Once the price hits below the key level of 1,800 US dollars, it triggers a sell-off. It is likely that the price will test the 1,750 US dollar level when we have strong fundamental reasons such as vaccines, “said OANDA analyst Craig Erlam.

Further weighing on gold, US equities raced to record highs amid vaccine optimism and as investors bet on calmer global trade under Joe Biden’s administration in the United States.

Also read: [POPULER MONEY] Directorate General of Taxes National Car Auction | Luhut Praises Edhy Prabowo

“It is believed that Biden will take a calmer approach to trading with other countries like China and that is reflected in the stock market,” said Natixis analyst Bernard Dahdah.

US President Donald Trump said Thursday that if the Electoral College elects Biden, he will leave the White House, paving the way for Biden to officially take office as president.

“However, with very low interest rates and the prospect of a bigger economic stimulus, gold looks strong in the long term,” said Dahdah.

The economic impact of the Covid-19 pandemic has led global central banks to push down interest rates.

Simultaneously, a large amount of stimulus into the economy has raised fears of higher inflation, helping gold soar more than 17 percent so far this year.

In other metals, silver for March delivery fell 80.7 cents, or 3.44 percent, to close at 22.639 dollars an ounce.

Platinum for January delivery fell 5 dollars, or 0.52 percent, to close at 964.8 dollars an ounce.

– .