- Gold is struggling to cross above the 200 hourly SMA.
- Optimism about vaccines limits demand for safe-haven gold.
Gold is currently trading near $ 1,874 per ounce, after approaching the 200 hourly SMA at $ 1,876 during Monday’s Asian session. The bulls failed to settle above that moving average on Friday.
Despite the latest bounce from the $ 1,850 support, the immediate bias remains neutral as the downtrend line on the 1-hour chart is still intact. A breakout above that resistance would open the doors to the $ 1,900 region.
The odds of a bullish breakout appear slim, as prospects for an early launch of coronavirus vaccines are currently offsetting fears of economic restrictions to control the second wave of the virus, as evidenced by the rally in US futures. US stock markets As such, the precious metal is unlikely to attract strong safe-haven demand.
On the downside, the Asian session low of $ 1,868 is the level to beat for the bears. A break out of that level would point back to key support at $ 1,850.
Gold 1 hour chart
Gold technical levels
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