The precious commodity finds itself in a solid bearish market at present, which is owing to the heightened demand for riskier assets amongst global investors. The latter stems from the fact that U.S. yields remain at historically low levels due to FED's massively accommodative monetary policy stance. The high energy prices currently represent another contributing factor.
While the longer-term forecasts remain ostensibly bearish, gold's price action looks poised to have a temporary respite in the immediate future. The safe-haven tested the pivotal support at 1780.00 for a second time recently and has subsequently rebounded from it yet again. The currently emerging bullish correction is likely to drive the price action higher towards the next resistance before the broader downtrend can be resumed.
These expectations for a potential bullish pullback are further substantiated by the fact that this week is going to be relatively uneventful, allowing for trading action to ease up momentarily. Overall, the underlying fundamentals seem tilted towards the upside in the short-term; however, the longer-term outlook remains decidedly bearish.
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