- Gold resumes last week’s sell-off amid optimism for economic rebound.
- Vaccine hopes, upbeat Chinese PMI add to the risk-on market mood.
- Any recovery attempt is likely to remain shallow below the $1800 mark.
Following a weekly closing below the $1800 level, Gold (XAU/USD) resumes its downward momentum in Monday’s Asian trading, renewing four-month troughs below $1770.
The precious metal came under fresh selling pressure over the last hour, as the upbeat Chinese official Manufacturing and Services PMIs joined the coronavirus vaccine optimism, exacerbating the pain in the safe-haven gold.
Markets pinned expectations for a faster economic recovery next year, as the coronavirus vaccine could likely be rolled out as early as next month, fuelling hopes that life would return to normalcy early next year.
The economic optimism reduces the need for the additional fiscal and monetary stimulus, boding ill for the inflation-hedge gold. The bright metal lost 4.5% last week and surrendered the critical $1800 level, recording the worst week since end-September.
more to come …
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