XAUUSD H4 | Market Outlook

- The market plunged nearly 5% last Monday after Pfizer said its experimental COVID-19 vaccine was over 90% effective based on initial trial results. However, the vaccine optimism was tempered throughout the week by a spike in coronavirus cases in the United States and Europe. A Reuters tally showed novel COVID-19 cases soared by more than 100% in 13 U.S. states in the past two weeks, while the global tally crossed 52.45 million, underpinning the need for more stimulus.
- Despite the steep sell-off, gold prices remained underpinned by the prospect of continued monetary stimulus by the U.S. Federal Reserve and the hopes of fresh fiscal stimulus from the U.S. Government.
- Also Gold investors have to be wary of other companies announcing trial data in the coming weeks. Any news touting a successful trial could put more pressure on gold prices.