The oro (XAU / USD) stayed within the range of $ 1,865 – $ 1,899 on Tuesday, having faced rejection once again just below the $ 1,900 level. The daily chart continues justifying caution for the XAU / USD bulls, painting a bearish picture in the near term as growing concerns about covid weigh on optimism for the vaccine, FXStreet’s Dhwani Mehta reports.
Key Comments:
“The Expectations of additional US monetary and fiscal stimulus remain alive, especially after Federal Reserve Chairman Jerome Powell said that the American economy still has a ‘long way to go’ before you fully recover from the pandemic. Powell’s comments continue to put downward pressure on Treasury yields, offering gold price support for the moment“.
“The Escalation of concerns about the global resurgence of the coronavirus could deepen risk aversion sentiment going forward and raise demand for the safe haven of the US dollar. Therefore, bullish attempts on gold are likely to remain elusive as investors closely follow updates on vaccines. “
“It is worth noting that gold prices move below all major moving averages short-term daily “.
“Only a daily close above the 21-day SMA in 1.895$ will cancel out the downward bias. The next relevant bullish barrier is at 1.903$, which is the bearish 50-day SMA. Higher up, the 100-day SMA at 1.908$ it will be on the radars of the bulls. “
“The Monday low of 1.865$ is the immediate support, below which the support of the horizontal trend line in 1.851$ it’s the last resort for the XAU / USD bulls. “
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
