Today, gold prices fell globally by 1 per cent as investors chose to cash-
in on profits after the metal reached a seven-year high in the previous
Gold analysts witnessed a sharp drop in value to around the $1,660 mark at
the opening of Tuesday’s session, as traders looked to profit from the recent
bullish momentum in the previous session, which led to the precious metal
reaching highs not seen since early 2013.
Gold prices tested the resistance-turned-support line, stretching back to
September 2019, which is now at around $1,633. This increase in value was
of no big surprise, but the highs it reached were well beyond expectations.
On Monday we saw resistance levels break, with gold reaching a peak of
$1689.40. Concerning reports of fresh outbreaks of coronavirus around the
world means that despite the slight downward turn yesterday, the previous
upward trend is likely to resume in the coming days. Economic slowdown and
volatility of the global markets has seen many traders turn to gold as a safe
and stable investment. As stock market prices struggle, the gold price is on
track to surpass the $1,700 level again.
For traders and speculators, this is often a prominent sign. Gold prices tend to
rise when there is genuine financial trouble brewing. With stock markets
retracing slightly, it is normal to see investors switch on mass to alternatives.
Gold and even silver have always been a good solution during times like