Gold Records Worst Monthly Decline in Four Years as Market Mood Remains Positive

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.

Gold (XAU/USD) continued its decline in the early European session on Monday in what can be considered its worst decline in four years. The recent sell-off was triggered by the renewal of investor risk appetite across markets, as the prospects for COVID-19 vaccines revive hopes of a global economic recovery.

So far, the yellow metal has lost about 5.7% cumulatively in November, a record monthly decline since November 2016.

Furthermore, it is believed that the recent slide below the crucial $1800 round figure precipitated a fresh sell-off in the commodity. Market participants are now looking to the congressional testimony by Fed Chairman Jerome Powell, scheduled to hold later this week. Gold is regarded as a good shield against inflation and fiat debasement.

Meanwhile, analysts at Citibank have readjusted their gold-price predictions for 2021 and their projections for inflows in gold ETF to the downside, as developed economies show decent prospects for recovery.

The analysts noted that net investment into gold ETFs should hit 800 tons in 2020, 75 tons short of their original prediction and 50% lower again next year. Currently, they have adjusted their near-term support target in the non-yielding metal to $1700, painting a grim outlook for gold’s near-term prospects.

However, the analysts at Citibank expect a rally above the $2000 mark in the next three to six months.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — November 30

XAU/USD Major Bias: Bearish

Supply Levels: $1777, $1792, and $1800

Demand Levels: $1764, $1748, and $1718

Our hourly paints an even grimmer picture gold, as the commodity, can be seen barrelling towards the base of our descending channel. At the moment, a fall below the $1764 mark could accelerate gold’s decline and decimate the little prospect remaining for recovery before the end of the year.

That said, only a recovery above the $1800 mark can confirm a renewal of bullish momentum in the XAU/USD.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *