Gold’s recent decline creates new hope for bargain hunters
Gold’s recent decline creates new hope for bargain hunters

Gold’s recent decline creates new hope for bargain hunters

 
A recent drop in Gold pushed the yellow metal towards the low 1700s, prices not seen for over 8 months. While many are still bullish on the precious metal, further losses could very much still be on the table.
New trend or correction in a very bullish market?
Gold, known as a safety linked asset during global uncertainty is once again becoming a favorite for different types of traders. The Covid pandemic has kept it on edge throughout last year, creating demand fueled by a decline in physical supply. This has carried on into 2021 and in order to support economies, many countries resorted to stimulus packages which meant Gold will continue to offer plenty of opportunities, at least in the near future.
In other words, fundamentals support higher prices yet the short term is seeing negative action, further fueled by an impulsive Dollar that recently rallied despite a very established and clear downtrend.
Wall Street Vs Main Street
In surveys done across the industry, market experts were rather bearish on Gold for the current week yet retail traders were focused on renewed upside. While Gold could play out in a number of different ways, volatility is present, likely to continue and should create plenty of irrationality as traders look to make sense and find clear new direction.
Gold’s road show
In India, consumers are dropping big amounts as Gold gets cheaper in a country that is big on holding the physical precious metal. Dealers are not enjoying the smooth inventory buildup they hope for given the limited supply and lack of full capacity production. Nonetheless, they continue to stock up in advance as prices could once again rebound sharply.
Singapore dealers noted firm demand with premiums being charged while China saw subdued activity given Covid-19 restrictions around the country. This was also the case for Hong Kong dealers who sold the metal on par or with a small premium while Japanese dealers charged half a Dollar extra for transactions.
For those of you looking for more insight, it’s worth noting that the $1700 area could see consolidation and could be key for what happens next. Traders are advised to remain vigilant as volatility dominates the trading hours of the major markets and occasionally, off market hours.
The content present in this article reflects the opinions and views of the author and does not necessarily reflect the position of CFI. The material published on this blog is provided for informational purposes only and should not be considered as investment advice. The Company is not responsible for the decisions and choices of the investor who has full and free will to make decisions that they see appropriate upon the investor’s sole discretion.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest - CFI LEBANON
BDL no. 40
1019238,
Ellipse Center 3rd floor, Charles
Malek Avenue, Achrafieh

CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

niss
forme
The Best Online Financial Trading Services, Middle East, 2020
Entrepreneur Magazine

Please publish modules in offcanvas position.