In the last few days a stream of positive updates about vaccines have pulled up stocks. The general risk on scenario hit the gold price, triggering a notable decline last week. Yesterday, bullion dropped a further 1% on the news of the increased percentage success of Pfizer’s vaccine. So far the price has managed to remain in the lateral trading range of the last few months between $1,850 and $2,070. We are just a few dollars above the lower edge of this channel and a fall below this mark would be seen as a negative signal. Investors, anyway, should not forget the strong dovish activity of central banks, which will last for a long time and are likely to be supportive for the yellow metal.
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