XAU / USD Recovers Above $ 1,840 Level On Two-Day Highs

• Gold regains positive traction on Tuesday and reverses the previous day’s slide to nearly two-week lows.
• The resistance at $ 1,848-50 could limit any further gains ahead of the FOMC monetary policy meeting.

He oro is spreading its intraday gains and has risen to new daily highs, around the region of $ 1,845, at the start of the European session on Tuesday.

The precious metal has captured some new buying on Tuesday and has built on the previous day’s late bounce from nearly two-week lows around the $ 1,818 region. The continued rise in new coronavirus cases has overshadowed recent optimism about the vaccine launch, which in turn has benefited gold’s safe-haven status.

Apart from this, Hopes for New US Fiscal Stimulus Measures They have offered some additional support to the yellow metal. Meanwhile, a moderate action in the price of the US dollar has done little to influence the prices of gold, denominated in dollars, or hinder the positive movement, with the bulls they looked to take advantage of the strength beyond the 200 hourly SMA.

Having said that, upside is likely to remain capped near the $ 1,848-50 regionas investors could refrain from opening aggressive positions before a monetary policy meeting of the FOMC. Therefore, any subsequent bullish movement risks fading fairly quickly and warrants some caution before positioning for any further bullish movement.

Market participants are now awaiting the US economic calendar, featuring second-tier releases from the Empire State Manufacturing Index and industrial production data. This, coupled with the news of US stimulus, could influence USD price dynamics. Investors could also follow the signs of events related to the coronavirus saga and overall market risk sentiment.

Technical levels of gold