During the Asian session on Tuesday (December 29), spot gold rose slightly, trading around 1878. Trump’s optimism in signing the bailout bill still pushed up the price of gold, and the slight decline in the US dollar also supported the price of gold. The strength continues to attract safe-haven funds to take risks, which limits the upward trend of gold prices. In addition, investors still need to pay attention to the advancement of vaccination in Europe and the negative impact of new strains on the global epidemic.
The increase in the price of gold in 2021 will largely depend on the magnitude of the decline in the US dollar. The market generally believes that the decline of the US dollar will continue in 2021, and the US stock market is expected to continue to strengthen in the short term. The short-term gold price comes to a crossroads and faces a decision. Investors need to wait patiently for the opportunity to enter the market.
Today, the Asian market rebounded after the opening of the market. The current price is at 1880. The pressure trend is obvious. Bearish trades should be made in the day.