Gold Revisits $1,781 Support – A Good Buy Opportunity
[[Gold ]] prices closed at $1,788.45, after placing a high of $1,801.50 and a low of $1,783.35. Gold reversed its course again day on Monday, dropping, due to the strength of the US dollar. The US dollar was seeing inflows, thanks to its safe-haven status, amid the prevailing uncertainty in the market regarding whether this new variant is more dangerous than the Delta variant.
The new South African variant of the coronavirus is spreading faster, already having reached to the Netherlands, Denmark and Australia. Given the rising spread of potentially vaccine-resistant variants, more and more countries have started imposing travel restrictions, in efforts to seal the area off, against the coronavirus.
According to the World Health Organization, the new Omicron variant has mutated heavily, posing a very high risk of surging infections. However, some investors believe that its impact might not be as grave as feared, because a top infectious disease expert in South Africa said recently that the existing COVID-19 vaccines might be effective in preventing severe progression of the disease and the need for hospitalization.
Meanwhile, on the data front, at 20:00 GMT, the pending home sales figures came in, showing a surge to 7.5% in October, against the predicted 0.8%, thereby supporting the US dollar and ultimately assisting the further decline in the gold prices, as the two are negatively correlated.
Gold – A Technical Outlook – XAU/USD to Face Resistance at $1,803
Daily Technical Levels
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