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Gold prices have fallen sharply Monday morning in North America, from above $1,950/oz (£47.58/gram) to $1,866.30/oz (£45.53/gram). Prices recovered to $1,880/oz but remain vulnerable to some further weakness. The combination of the results of the U.S. presidential election and the recent announcement from Pfizer suggesting its vaccine is 90% effective against Covid-19 all weighed heavily on gold prices. Stock markets are up sharply, but the U.S. dollar has not moved significantly from where it was at the end of last week. The recent vaccine headline will be meticulously analyzed by market participants and the realization that we are all still far away from its effective distribution and use will settle the initial euphoria.
There are three enormous sets of issues facing the world: The pandemic, the economic recession, and political instability. None of these are likely to be solved easily or quickly, regardless of the change of Administration in the United States.
Gold is expected to move higher as the week progresses.
Note: Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM.
US$/GBP exchange rate used: 0.76