Biggest immediate gold price risk is U.S. government inaction – analysts – by Anna Golubova (Kitco News – November 13, 2020)

https://www.kitco.com/

(Kitco News) After the euphoria of positive vaccine news, the risk-off sentiment is back in the marketplace as investors face a harsh reality of record coronavirus cases, more restrictions, and no new stimulus.

After losing $100 at the start of the week, gold has been in recovery mode, which will continue into next week, according to analysts.

“Even after the drop, we were constructive both gold and silver,” said Kitco Metals global trading director Peter Hug. “Thought gold would hold $1,850, which it did … This is the market that you want to buy. I don’t think anything changed.”

On Friday, gold accelerated its advance as 10-year yields reversed, and the U.S. dollar weakened. December Comex gold futures last traded at $1,887.10, up 0.74% on the day.

“We’ve seen 10-year yields that recently jumped have come off. In that context, gold is doing well, volatility has dropped, and the market is realizing that it will be more of the same.

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