Gold: Remains Under Pressure amid Subdued Investment Demand
George Lam November 17, 2020 9:35 PM
Spot gold remains under pressure as Covid-19 vaccine development continues to weigh on the precious metal.
Official data released on Tuesday showed that U.S. retail sales grew 0.3% on month in October, weaker than +0.5% expected. However, spot gold was still down 0.5%, as Covid-19 vaccine development continues to weigh on gold prices. Meanwhile, Bloomberg data showed that total know ETF holdings of gold dropped for a fourth straight session to 109.7 million troy ounce as of November 17 and below October's level.
From a technical point of view, spot gold remains under pressure as shown on the 1-hour chart. In fact, its previous rebound has failed to break above the 38.2% Fibonacci retracement resistance of the decline started from November 9. The level at $1,897 may be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,864 and $1,851 respectively.
Source: GAIN Capital, TradingView
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