November has been unlucky for Gold price. Recently we have witnessed severe changes in the price of Gold and USD. Gold has suffered significant fall in its price. The traders interested in the investment in Gold and USD faced disturbing disappointment. We can expect that the tables will turn soon as the Economists believe that the trend of increase in the price of Gold and USD will extend further. Gold is expected to rise by 22% in 2021. The future prospect is better as compared to today. The pandemic is regarded as the most contributing factor in this change. The news of the vaccine of COVID-19 is affecting the Forex market. The second wave of the pandemic and the news of its vaccine still manage to disturb the smooth trading process.
Vaccine of COVID, USD and the Price of Gold:
The pandemic has already affected badly all the sectors and departments of economy. Still the news of the vaccine of this terrifying disease continues to affect the trade. The investors have expressed their concern about the future value of USD. The prominent pair of EUR/USD manages to be in range. USD has regained the trust of long-term investors. This pair attracted attention of the traders who like to indulge in long-term game. Finally traders are looking forward to participate in long-term trade with positive news of the vaccine of COVID.
Downfall of EURO and USD:
The meeting of European Central Bank is about to further ease the monetary policy. Thus EURO is facing a decline in its price. The fall in EURO means an increase in the value of USD. Therefore the decline in Euro can also be treated as a major contributing factor in improving the value and worth of USD. As currencies are traded in pairs thus the decline on one currency means the increase in the value of other currency of the same pair. The rate is further going to change in the next time as the last month of 2020 will continue to shake the Forex market with unexpected turns.
An increase in the value of Asian Currencies:
However despite all the positive news, we cannot ignore the fact that USD is becoming weaker as compared to many Asian currencies. USD has witnessed a significant drop as compared to Pakistani Rupee. It has won 1.52 rupees against USD on Wednesday. There is an increase in the value of PKR. We can witness an increase in the value and worth of Malaysian Ringgit as compared to USD. Therefore all is not well for USD.