Gold prices this week sharply rose above $1,800 after a rally as high as
$38.09. The positive dynamic was a result of markets' betting on US
fiscal stimulus bill. Amid risk-on market dynamics, gold will see a
bearish picture in the medium term but a bullish outlook in the long
run.To get more news about WikiFX, you can visit wikifx official website.
Recent headlines stated that the president-elect Biden had nominated
former Fed Chair Janet Yellen as the US Treasury Secretary, a position
in which she may provide more support to pull the economy out of the
ditch.
Besides, the roll-out plan of Covid-19 vaccines will bring down
unemployment but ratchet up inflation. Some agencies reported a marked
acceleration in US production growth to the fastest for just over six
years, reflecting a pick-up in the pace of manufacturing's recovery in
November. Despite pandemic resurgence, companies remain upbeat about
their long-run prospects, which pushes inflation higher, boding well for
gold.
In the medium term, markets will embrace buoyant risk appetite on
vaccine progress and US political stability. Thus the haven-linked gold
will suffer further pressure. In the long run, however, gold will revive
along with the recovery in the global economy
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