COVID changes interest rate outlook again - Gold price rebounds strongly!

The new South African variant of the coronavirus is shaking the market. More importantly, it is not difficult due to the limited number of investors in the market, due the long Thanksgiving weekend in the United States. The Wall Street session will take place today, however it will end sooner.

Coronavirus is a threat to economic activity, which means that currently the market is not expecting strong interest rate increases compared to yesterday! On Thursday, Goldman Sachs expected three rate hikes in 2022. Now the situation is completely different:

Market expectations regarding the first rate hike of 25 bp moved from July to September
What's more, second rate hike expectations had been postponed to 2023!

The expectations of lower interest rates and the high probability that the tapering process will remain unchanged cause bond yields to decline. This, in turn, leads to a weakening of the dollar and a significant rebound of gold, the price of which bounced off major support.

The price of gold has rebounded from key support. In addition we probably witness the formation of a morning star pattern. Gold is currently testing the 38.2% Fibonacci retracement, but the key resistance is located around $ 1,833. Source: xStation5

20 October 2025, 6:07 PM

NATGAS gains 12% 🚨📈

20 October 2025, 3:55 PM

GOLD returns to ATH levels 📈

20 October 2025, 6:32 AM

Morning wrap (20.10.2025)

17 October 2025, 6:28 PM

VIX drops 10% amid Wall Street rebound attempt🗽

commodities

Cookie name	Description
SERVERID
userBranchSymbol	Expiration date 1 day
test_cookie	Expiration date 1 hour
adobe_unique_id	Expiration date 364 days
__hssc	Expiration date 1 hour
SESSID	Expiration date 1 day
__cf_bm	Expiration date 1 hour
intercom-id-iojaybix	Expiration date 270 days
intercom-session-iojaybix	Expiration date 6 days
xtbCookiesSettings	Expiration date 364 days
TS5b68a4e1027
countryIsoCode
xtbLanguageSettings	Expiration date 364 days
userPreviousBranchSymbol	Expiration date 364 days
intercom-device-id-iojaybix	Expiration date 270 days
__cfruid
_cfuvid

Cookie name	Description
_gid	Expiration date 1 day
_gat_UA-98728395-1	Expiration date 1 hour
_gat_UA-121192761-1	Expiration date 1 hour
_gcl_au	Expiration date 89 days
_ga_CBPL72L2EC	Expiration date 729 days
_ga	Expiration date 729 days
__hstc	Expiration date 179 days
__hssrc
_vwo_uuid_v2	Expiration date 365 days
_ga_TC79BEJ20L	Expiration date 729 days
_vwo_uuid	Expiration date 365 days
_vwo_ds	Expiration date 29 days
_vwo_sn	Expiration date 1 hour
_vis_opt_s	Expiration date 99 days
_vis_opt_test_cookie
af_id	Expiration date 394 days
afUserId	Expiration date 730 days
AF_SYNC	Expiration date 6 days
AnalyticsSyncHistory	Expiration date 29 days

Cookie name	Description
MUID	Expiration date 389 days
_omappvp	Expiration date 3998 days
_omappvs	Expiration date 1 hour
_uetsid	Expiration date 1 day
_uetvid	Expiration date 389 days
_fbp	Expiration date 89 days
fr	Expiration date 89 days
_ttp	Expiration date 89 days
_tt_enable_cookie	Expiration date 89 days
hubspotutk	Expiration date 179 days
IDE	Expiration date 389 days
YSC
VISITOR_INFO1_LIVE	Expiration date 179 days
li_sugr	Expiration date 89 days
guest_id_marketing	Expiration date 729 days
guest_id_ads	Expiration date 729 days
guest_id	Expiration date 729 days
muc_ads	Expiration date 729 days
VISITOR_PRIVACY_METADATA	Expiration date 179 days
MSPTC	Expiration date 389 days

Cookie name	Description
bcookie	Expiration date 364 days
lidc	Expiration date 1 day
UserMatchHistory	Expiration date 29 days
bscookie	Expiration date 364 days
li_gc	Expiration date 179 days
personalization_id	Expiration date 729 days

COVID changes interest rate outlook again - Gold price rebounds strongly!

Join over 1 700 000 XTB Group Clients from around the world