By Francis Ogwo
Investors in gold have counted their losses with the recent sharp drop in price of gold which has been regarded as the lowest since July.
The trading session on Tuesday showed that gold dropped through the $1,800 mark for the first time since July.
The precious metal went down 0.16% to trade at $1,801.75/ounce after losing over 35 dollars on Tuesday alone even as so many investors put in their money on other assets .
A Nairametrics survey had Stephen Innes Chief Global Market Strategist at Axi speak on the macros giving gold bears such resolve in taking the price bandwagon down to its lowest level since July;
“The improved expectation for material vaccine deployment in 2021 has likely closed the door on the gold upside. And given the heft of ETF positions, especially the massive accumulation since the beginning of this year, there is definite scope for a deluge of ETF unwinds. So, look for a massive clear out again on a break of the psychological $1800.
“Gold fell and hit its lowest level since July. It is much of the same – transfer of ownership continues into stable allocation – with no huge clips dealing with Asian banks providing the offer during Shanghai Gold Exchange hours.
“Gold rout continues as investors embrace vaccine news. The break of USD1,800/oz support may take prices near USD1,750/oz as surging investor optimism due to promising COVID-19 vaccines has undermined gold and silver.”
It is expected that the precious metal will continue to be under immense pressure from the gold bears taking into account the commanding macro theme related to a vaccine recovery and the reduced risks associated with central bank debt monetization or the pursuit of quasi-modern monetary theory.