XAUUSD: GOLD SLUMPS AS ECONOMIES RECOVERS
While the measures taken due to the increase in Covid-19 cases were tightened, the risk appetite in the markets increased with the positive news of the vaccine. Pfizer and Biontech's announcement that the vaccination they developed against Covid-19 could begin on December 13 increased the optimism in the markets. Especially after the vaccine was 95 percent effective, the two institutions applied to the US Food and Drug Administration (FDA). With the increasing expectation that the vaccine will begin to be distributed before the expected date, the increasing risk appetite in the markets has accelerated the exit from safe ports. In addition, it is seen that sales accelerated on the Ounce Gold side of the premium view on dollar assets after the manufacturing and service PMI figure announced on the US side in the evening, above expectations.
It was also added to the vaccine developments that Astrazeneca was found to be 70% effective in the Covid-19 vaccine analysis study. While the British Minister of Health stated that they ordered 100 million doses, he described the news of the global Covid-19 vaccine as seriously encouraging. World Health Organization Director-General Dr. Ghebreyesus, on the other hand, made the assessment that the light at the end of this long and dark tunnel appeared with the latest positive news from vaccine trials. Thus, it is seen that this important step taken within the scope of combating the epidemic increases the positive complacency in the markets. US 10-year bond yields also rose to 0.85 percent, signaling the exit from safe-havens.
If we look at the technical picture of Ounce Gold prices, after the positive PMI data yesterday, the premium on dollar assets created sudden sales pressure in precious metal. Thus, a price movement below the 1830 level occurred in Ounce Gold prices. Especially if the level of 1825 is passed permanently, it can be expected that the withdrawals will increase and accelerate towards the 1800 and 1780 level. On the contrary scenario, if the effort to hold above the 1825 support is successful, we first follow the 1850-1870 resistance zone for the continuation of the rise.