Is Gold a buy or sell in December?

Gold price remains supported by uncertainty over the global economic future, but this precious metal is still not able to surpass $1900 resistance. While the markets may continue welcoming upbeat vaccine news, rising Covid cases and the ongoing delay in U.S. fiscal stimulus could keep gold prices afloat.

The price of Gold extended its correction from the recent highs above $1870 but despite this, gold price remains in an uptrend according to technical analysis. The Food and Drug Administration authorized the Pfizer-BioNTech coronavirus vaccine for emergency use in the U.S. last week, and some analysts say that this could change the positive trend of Gold.

This announcement is excellent news for humanity, but we still don’t know how effective the vaccine is in the longer term. The vaccine requires two doses that are taken 21 days apart, and it is important to say that Pfizer’s vaccine must be stored at a temperature of about -70°C.

The main problem with this is transportation and distribution, so there is still a long way to go before widespread vaccination. These indicate that the pandemic will not stop in the upcoming months, and any bad information on the pandemic will support this precious metal.

The U.S. surpassed the 16 million coronavirus cases on Saturday, and the country still needs to face the COVID-19 challenge. From the fundamental perspective, this will force the Fed to expand its economic stimulus, which is positive news for gold price.

Investors’ attention is focused currently on the U.S. stimulus, they are convinced that the U.S. stimulus is on the way, but the only question is how much and when.

Nancy Pelosi said last week that negotiations over a coronavirus stimulus package could run through the holiday period, but this is too late according to some analysts. “At this point, markets have priced in and are expecting stimulus near term, so if that really does not happen by the 18th (the new budget deadline) that will be a mild headwind for risk assets”, said analyst Tom Essaye.

Gold price remains in the bull market, and as long the price is above $1800 support, there is no risk of the trend reversal.

The current resistance levels are $1850 and $1900; $ 1800 and $1750 represent the critical support levels. If the price jumps above $1850, it would be a signal to buy Gold, and we have the open way to $1900.

On the other side, if the price falls below $1800, it would be a firm “sell” signal, and we have the open way to $1750.

Gold price remains in the bull market, and as long the price is above $1800 support, there is no risk of the trend reversal. The U.S. surpassed the 16 million coronavirus cases on Saturday, and the country still needs to face the COVID-19 challenge. From the fundamental perspective, this will force the Fed to expand its economic stimulus, which is positive news for gold price.

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