Gold price bearish tone continues as today is the third Monday in a row when the world receives positive news on the battle against the pandemic. As such, the closer we get to finding a vaccine that works, the bigger the pressure on the gold price.
From a technical perspective, gold looks like forming a triangle as a reversal pattern. A break of the horizontal base should send the XAUUSD much lower. Â
AstraZeneca Offers a Cheaper Vaccine Solution
Today AstraZeneca announced the results of its vaccine solution against the COVID-19. While the efficacy is only 70%, the vaccine has other advantages. One is the price – it comes at only $3 or $4 a dose. Another is the storage temperature – between 2-8 degrees Celsius. Therefore, the AstraZeneca vaccine is easier to transport and represents a solution for countries that cannot afford a potentially more efficient vaccine but at a higher cost.
Triangle as a Reversal Pattern
If the gold price breaks below the horizontal base, bears may want to remain on the short side until the measured move around the $1,600 level. On such a break, the stop loss must be set at $1,950 for the risk-reward ratio to make sense. Â
Gold Price Forecast
