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Trend of Gold Prices: Worst Monthly Decline in 4 Years in November - Risk On Sentiment Gets Boost

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Posted on : 01/Dec/2020 2:35:37 PM



 
 
 
Even as the news from major pharmaceutical companies points to their success in vaccine trials and getting ready for supplying the vaccine to the public, gold has been seeing the worst decline in more than 4 years!

After the MCX trading began late on Monday, the gold price retreated lower by almost 1% and closed at Rs. 47763 per 10 gm. Given the common trend of the safe-haven appeal of the yellow metal, this took a toll as economic recovery hopes give wings to risk-on sentiment.

During November, the gold price recorded a steep fall of over 5 per cent. In the international markets, gold has been dragged to its lowest in 4 months to $1775.11 per ounce.

 Michael McCarthy, the chief strategist at CMC Markets, observed:  "Vaccine-inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold".

Further, gold has been seeing the fall despite the declining dollar which is also dragged to a more than 2-year low.

 Margaret Yang, a strategist at DailyFX., noted: "Gold looks bearishly biased and I don`t see any signal of a trend reversing anytime soon". |She informed further that though gold has reached oversold territory, the overall trend is so bearish that a technical rebound may not last for long and be sustainable.
 
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