Gold Saw Worst Monthly Decline In 4 Years In Nov As Risk On Sentiment Gets Boost

The news from major pharma companies points to their success in vaccine trials and amid it gold has been seeing the worst decline in more than 4 years.

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

Gold Set For Worst Decline In 4 Years As Risk On Sentiment Gets Boost On Vaccine Hopes

In the month of November, gold shed a steep over 5 percent. In the international markets, gold has been dragged to its lowest in 4 months to $1775.11 per ounce.
"Vaccine-inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold," said Michael McCarthy, chief strategist at CMC Markets.

Further, gold has been seeing the fall despite the decline dollar which is also dragged to a more than 2-year low. "Gold looks bearishly biased and I don't see any signal of a trend reversing anytime soon," said Margaret Yang, a strategist at DailyFX.

Though gold has reached over-sold territory, the overall trend is so bearish that a technical rebound may not last for long and be sustainable, she added.

GoodReturns.in