Gold price may continue to rise

The news about the coronavirus vaccine dealt a crushing blow to buyers of precious metals. The price of gold plummeted by $100 in just one day, the worst day in 7 years. Expert reviews are overflowing with trading recommendations to close long positions and open sell deals.

What happens with gold - is it a deep correction or can we talk about a global reversal to the decrease? Yaroslav Kabakov, the strategy director of IC "FINAM" answered the question of the Fortrader magazine

- Short-term correction in gold prices would have been perfectly normal after the rally in July. It is not quite logical to link the dynamics of gold prices with the development of a vaccine in Russia or with the number of new cases of Covid-19. A considerable growth in gold prices took place at the turn of July and August, when the epidemiological situation in the world had already started to improve.

However, there are other risks, such as the strengthening of the dollar and rising interest rates, but these risks are still difficult to realize, given the current realities of economic growth in most countries.

At the end of the current upward correction and consolidation, gold could continue its move to new highs, especially if the dollar continues to weaken against a basket of major currencies.