FXStreet reports that gold plunged more than 4 percent on Friday. However, the bullish story may not be over yet, in the opinion of Bart Melek, Head of Commodity Strategy at TD Securities. 

“Given that vaccine programs in the US and through many parts of the world are very much behind schedule and the pandemic is raging, economic conditions will remain weak for a while longer. This suggests that yields may not move as high as some gold traders seem to be betting, which may be good news for gold prices.”

“The drivers that hit gold hard such as a steeper yield curve, higher yields (nominal and real), technical selling and firmer USD may not continue to trend in the upward direction for much longer. This implies that gold, after hitting support near the $1,820s may be ripe for a bounce higher. We still judge that gold has a material upside, with $2,000 in the cards over the next twelve months.”