The precious commodity has had a very rough several weeks, tumbling nearly 200 dollars per troy ounce in the wake of the recent vaccine optimism. The reinvigorated investors and traders' enthusiasm catalysed the major selloff, as the global demand for safe-havens and other low-risk securities plummeted. The market is currently riding high on the expectations for a sharp rebound in global economic activity in 2021, but it is yet to come to terms with the realisation that it will take time before there can be worldwide vaccination.
The market could very well be getting ahead of itself, but eventually, traders and investors need to come to grips with the fact that no vaccine can be a substitute for lost productivity. Despite some notable improvements, the underlying economic situation is not yet as optimistic as it might seem at first glance.
Global manufacturing output is sinking across the board with China being a notable exception. Meanwhile, consumer confidence is recoiling in the Eurozone as well as in the US. French and German industries were hit unevenly in October, whereas Canada's economic growth was stymied in November.
|Short Term||Long Term||Net % Gains|
|27.70 USD||0||29.00 USD||0||
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