XAU / USD moves away from highs, remains offered in the $ 1,875 zone

• Gold gained some positive traction on Tuesday and retraced part of the overnight slide.
• Lack of tracking purchases warrants caution before placing aggressive bullish bets.

The gold It maintained its modest intraday gains during the early North American session and was last seen trading just above the $ 1,875 level, down around $ 15 from daily highs.

As investors look beyond optimism about a promising development in the late-stage COVID-19 vaccine trials it faded fairly quickly amid questions about the efficacy and duration of the immunity provided. The skepticism helped the precious metal to make a solid bounce from the vicinity of the support of the September monthly swing lows, around the $ 1,850-48 region.

Aside from this, a further bearish leg in US Treasury yields further contributed to propel flows into the underperforming yellow metal. The rally allowed XAU / USD to regain a portion of the overnight drop to month-long lows, although it lacked strong bullish conviction despite a pause in the rally in global equity markets.

The resurgence of hopes for a rapid global economic recovery appeared to be one of the key factors preventing the bulls from making aggressive bets. Beyond this, a modest pickup in demand for the US dollar seemed to do even more to limit the rise in dollar-denominated commodities, warranting some caution before making further bullish bets.

There is no important economic data to move the market that is released in the United States on Tuesday. However, speeches from FOMC members could influence USD price dynamics and produce some significant trading opportunities around XAU / USD.