Gold Price Forecast:
- When good news goes wrong, at least for Gold[1] bulls. Gold has put in a massive bearish move of -5% on positive news of a Covid vaccine.
- Gold prices had broken out from the falling wedge formation late last week, giving the appearance that bullish continuation might be in the cards. That has reversed aggressively.
- This covid news is still relatively new and the situation remains fluid: Be prepared for continued volatility in Gold and other macro markets.
- The analysis contained in article relies on price action[2] and chart formations[3]. To learn more about price action or chart patterns, check out our DailyFX Education[4] section.
The resounding driver across global markets today is one driven by hope: If you’re reading this you probably already know that Pfizer has announced some pretty positive results for their Covid vaccine[5]. This entails apparently a +90% efficacy rate and a protection span of at least a month. But, perhaps the more exciting part of the announcement is the way that the vaccine works, as Pfizer’s drug relies on messenger RNA (mRNA) for inoculation. This is similar to other Covid drugs in the pipeline, such as the one produced by Moderna, and this provides for even more hope as a failure from Pfizer could be rectified by another candidate.
Interestingly – the US equity index that experienced the largest push to start the week is also the one that stripped Pfizer out of the index less than three months ago…
The Dow Jones Industrial Average[6] had Pfizer as one of their 30 companies for a long time; but in August, moved to take Pfizer out of the
