- XAU / USD gains for the third day in a row, despite the risk appetite.
- Yellow metal testing the 20-day moving average at $ 1,895 protecting $ 1,900.
The gold it bottomed hours ago at $ 1,863 / oz and then recovered $ 30, erasing losses. It returned above $ 1,890 after making a sharp change. The yellow metal fell earlier Monday after a report about a COVID-19 vaccine triggered a rebound in stock prices.
Gold’s rally from the floor came even as Wall Street held on to gains. The US dollar lost some momentum and fell back. Monday’s moves augur well for gold which is rising this time with good news. A week ago, when the Pfizer vaccine report was released, it fell from above $ 1,950 to $ 1,850, without recovering later.
In a broader perspective, gold continues to consolidate within an uptrend. Last week it was rejected above $ 1,930 and found support again around the $ 1,850 zone which is the key support at the moment.
CitiBank analysts continue to see that XAU / USD it will go up over the next few months with possible corrections. “We do not expect the Fed statements or monetary policy in the US to change for quite some time. During secular multi-year gold bull cycles, large sell-offs are not unusual and the current gold bull cycle that began in Q4 2018 has not posted a negative quarterly return for two years. We maintain a bullish target of between 6 and 12 million at $ 2,300 – $ 2,400 / oz. ”
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