Rallying stock market keeps gold price under pressure: Commerzbank
(Kitco News) Risk-on sentiment is adding fuel to the stock market rally, putting downward pressure on gold, according to Commerzbank. “Gold is currently facing headwind from the high-flying stock markets: all key U.S. stock indices closed at new record levels yesterday. The positive market sentiment is being fed partly by the fact that the number of new corona infections in the U.S. has been falling for several weeks, but above all by the hope that a Covid-19 vaccine will soon be available,” Commerzbank analyst Carsten Fritsch writes. “There is less demand for safe havens like gold in such an environment.” Disinterested in gold is also visible via subdued gold ETFs inflows, the analyst adds. “Gold is unlikely to make any renewed bid to reach the $2,000 mark in the near future. At the moment, the $1,920/1,900 range is providing good downside support,” Fritsch says.