Gold was able to rise a little bit after bulls managed to prevent bears from breaking 1790.00. At the moment, it’s too early to say that the decline is over and the asset is expecting nothing but growth ahead because bulls haven’t broken 1825.00 yet. Negative market sentiment forces investors to escape risks related to the stock market slump and the increasing number of new coronavirus cases, which may slow down the current economic recovery all over the world.
The number of investors buying gold is reported to be increasing rapidly. However, it’s understandable since the precious metal has always been considered a “safe haven” asset and tends to be extremely popular when financial markets and the global economy experience uncertainty. Given the current situation, which is the ongoing coronavirus pandemic and low rates, it’s not surprising that investors are getting more and more interested in gold.
Another signal in favor of a further uptrend in gold is the data on the open interest on gold futures, which has been growing for several consecutive trading sessions. In this case, one shouldn’t exclude a further bullish trend after a long correction that we had been witnessing since the end of 2020.