- Gold recovers from lows but remains under pressure as the US dollar strengthens on risk aversion.
- The increase in coronavirus cases and new global lockdowns influence market sentiment.
- Optimism about vaccines is ignored, as the focus remains on updates on Covid data.
The oro (XAU / USD) attempts to bounce from weekly lows near the $ 1,855 level, with the bulls recovering the level of $ 1,860 despite risk aversion fueled by the relentless rise in coronavirus cases on both sides of the Atlantic.
It seems that Investors take profit from their bearish positions after the price has once again held the critical support of $ 1,850. Additionally, gold prices benefit from falling US Treasury yields amid a lack of demand for riskier assets.
But nevertheless, Gold recovery attempts appear shallow as safe haven US dollar demand remains strong amid renewed global economic concerns. The rebound in coronavirus cases and new blockades announced in the US, Australia and Europe threaten the prospects for an economic recovery, weighing on the hype generated by the vaccine.
After Pfizer and Moderna, AstraZeneca has announced promising results from its covid vaccine trial, adding that the final results of the phase 3 trial are expected in a few weeks.
The focus is now on Philadelphia Fed manufacturing data and initial weekly US jobless claims for new clues about the economy. The latest US coronavirus statistics will also be closely watched.
Technical levels of gold
Immediate resistance awaits at the daily high of $ 1,874, above which the bulls will prepare for a test of the critical $ 1,891 level. On the downside, the October low of $ 1,860 could be retested. A break below that level would point to the next support at $ 1,850 / 49, where the September low and November 9 low are located.
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