Spiking Gold Outlook: Medium-Term Bearish

Spiking Gold Outlook: Medium-Term Bearish

Gold prices this week sharply rose above $1,800 after a rally as high as $38.09. The positive dynamic was a result of markets' betting on US fiscal stimulus bill. Amid risk-on market dynamics, gold will see a bearish picture in the medium term but a bullish outlook in the long run.To get more news about WikiFX, you can visit wikifx official website.   Recent headlines stated that the president-elect Biden had nominated former Fed Chair Janet Yellen as the US Treasury Secretary, a position in which she may provide more support to pull the economy out of the ditch.   Besides, the roll-out plan of Covid-19 vaccines will bring down unemployment but ratchet up inflation. Some agencies reported a marked acceleration in US production growth to the fastest for just over six years, reflecting a pick-up in the pace of manufacturing's recovery in November. Despite pandemic resurgence, companies remain upbeat about their long-run prospects, which pushes inflation higher, boding well for gold.   In the medium term, markets will embrace buoyant risk appetite on vaccine progress and US political stability. Thus the haven-linked gold will suffer further pressure. In the long run, however, gold will revive along with the recovery in the global economy   All the above is provided by WikiFX, a platform world-renowned for forex information. For details, please download the WikiFX App: bit.ly/wikifxIN