The price of gold did not undergo any significant change on Wednesday morning. The worsening epidemiological situation in the world still puts pressure on investors, who, despite the news about successful clinical trials of a vaccine against coronavirus infection, continue to express serious concern about the rapid growth of the infection.
Gold futures contracts for December delivery on the trading floor in New York added 0.15% or $2.8. Thus, the current price is now consolidating at $1,879.15 per troy ounce. The support level for the precious metal was at $1,848 per troy ounce, while the resistance was $1,966.10 per troy ounce.
Silver futures contracts for December delivery also slightly went up by 0.02% which sent it to $24.468 per troy ounce.
The euphoria about the next release of a vaccine against coronavirus infection is gradually fading. While fears about the rapid increase in the number of new cases of infection are only growing. This forces market participants to think about the future and invest their available funds in more reliable assets, which include gold and other precious metals.
In addition, USD gradually also ceased to aggressively react to the current events taking place in the US, which forced it to return to fall. This means that gold gets another incentive to strengthen, as its attractiveness as a safe-haven asset is growing. According to the latest data, the dollar index against a basket of six major currencies of the world fell by 0.2% and was already at the level of 92.89 points. This is a very unpleasant fact for the currency, but quite positive for gold.
Thus, while the COVID-19 vaccine is not ready for final release, and the greenback continues to experience difficulties, gold, meanwhile, will remain in favor for investors.
Comments from the US Federal Reserve regarding the problem of the rapid growth of the coronavirus pandemic and the associated slowdown in the country's economy confirmed further growth of the precious metal. Not only is the crisis not over, but it will continue to worsen in the near future, and state support will be a direct necessity to overcome it. All this will eventually become a growth factor for gold, which can lead to new record levels even in the current year.
Nevertheless, the rapid rise of the precious metal will not be so easy. Most likely, a correction may take place more than once, but it will be temporary and will not be established as the main trend.
Copper futures contracts for December delivery rose 0.18% on Monday, which allowed it to move to a new level of $3.1610 per pound.
