Gold Could Take U-Turn Amid Fresh COVID Restrictions

On analysis of the movements of Gold Futures, in different time frames, I find that the growing fear for fresh restrictions could reactivate Gold bulls. The U.S. has reported about 16 million total coronavirus cases, with rising deaths in recent days taking the tally above 300,000. Fears other parts of the U.S. could be set for further restrictions in the coming weeks offset fresh hopes for a stimulus deal. On the other hand, Mayor Bill de Blasio said New Yorkers should "prepare for the possibility for a full shutdown" after Gov. Andrew Cuomo over the weekend warned that the city could enter a full shutdown within a month.

I find that the Gold Futures look ready to retreat after testing the lows of $1822. There is no doubt that the uptrend voyage of Gold could be full of strict hurdles at some levels above $1857 and $1872, but the gold bugs could continue to remain active during this week; as the proposed new path toward getting a stimulus deal over the line stoked investor expectations that lawmakers would be able to deliver some form of stimulus before the Congressional holiday recess on Friday.



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