- Gold’s recovery from $ 1,850 is rejected at $ 1,880.
- XAU / USD fails to take advantage of the positive market climate.
- The drop from the $ 1,850 support could accelerate the downtrend.
Gold futures They are consolidating above $ 1,870 before the weekly close after being rejected at $ 1,880 earlier today. Gold has managed to rebound from a key support at $ 1,850, although it remains below $ 1,900.
The yellow metal has not taken advantage of the positive market sentiment sparked by the pharmaceutical company Pfizer’s announcement that they are seeking an emergency use authorization for their vaccine in the United States.
Gold’s rally has failed to prevent the second consecutive weekly loss and remains dangerously close to the bottom of the trading range of the past four months, which could accelerate the short-term downtrend.
XAU / USD remains dangerously close to the $ 1,850 support
On the downside, a breakout of $ 1,850 (late-September lows) could attract bears and push the pair towards $ 1,795 (mid-July lows) and finally $ 1,760, the 50% Fibonacci retracement of the rally. from March to July.
On the other hand, the pair should break above the psychological level of $ 1,900 and $ 1,910 and the confluence of the 50 and 100 day SMAS to ease the bearish momentum and return towards $ 1,960 (intraday high) and $ 1,995 (September 1 high). ).