- Gold extends the previous day’s losses and remains under pressure for the second day in a row.
- Optimism about COVID-19 boosted investor sentiment and weighed on safe-haven gold prices.
- A weaker USD and pessimistic expectations from the Fed offer some support and help limit losses, for now.
The oro maintains its sales pitch at the start of the European session on Tuesday, falling to the region of $ 1,825 in levels not seen since last July 21.
The precious metal has extended the losses of the previous day and has seen some sales for the second day in a row on Tuesday. The fall also marks the fifth day of negative movement of the previous six and is due to the prevailing sentiment of appetite for risk, which tends to weigh on the demand for safe-haven gold.
Global risk sentiment remains Backed by Latest Optimism About a Possible Early Launch of Coronavirus Vaccines. The already optimistic market mood received an additional boost on Monday with the news that the president-elect of the United States, Joe Biden, received the go-ahead to begin his transition to the White House.
But nevertheless, the emergence of some new selling around the US dollar extended some support to gold prices, denominated in dollars. The dollar has come under pressure from growing speculation of further monetary easing by the Fed, which in turn has helped the yellow metal find some support near the $ 1,820 congestion zone.
That said, any significant rally still looks elusive and the short-term bias for the XAU / USD remains firmly tilted in favor of the bears. Therefore, some continuation weakness towards the test of the very important 200-day SMA, currently in the region of $ 1,795, seems a possibility.
Market participants are now awaiting the US economic calendar, which features releases from the Conference Board Consumer Confidence Index and the Richmond Fed Manufacturing Index. The data could influence USD price dynamics, which along with broader market risk sentiment, should generate some significant opportunities.
Technical levels of gold
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