The path of gold to $2500 will open if the metal holds $1850

The S & P500 and Dow Jones 30 managed to record a fall at the close at 1.2% on Wednesday. If we talk about Asian markets, they also showed a retreat from recent highs. New pandemic anti-records are more alarming for investors, and positive news about the imminent development of a vaccine is not able to neutralize fears.

The number of new cases of infection in the world again exceeded past records, as did the number of deaths. A few days ago, many hoped to overcome the peak of the pandemic, but such hopes have so far been in vain. Consequently, not only statistical figures are frightening, but also probable expectations of restrictions in the economic sphere. The introduction of a full lockdown again threatens many EU states and some American states.

Even the shares of the so-called "work from home" group do not grow against this background, although there is every reason for this. A general weakening of markets and uncertainty about the future are the reasons for this. Gold has not been left out of the current problems. Its price is near the bottom of the range that has been demonstrated over the past four months. The decline in metal prices was driven by positive and negative news. Now buyers have become more active, which means that growth will begin soon.

Alexander Timofeev Analyst

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