XAU / USD remains capped below the $ 1,900 level

• Gold remains below $ 1,900 as concerns about the virus outstrip hopes for the vaccine.
• The XAU / USD forms a doji candle pattern with long wicks on the daily chart.
• The focus remains on US retail sales and coronavirus data.

The oro (XAU / USD) regains some ground during the European session on Tuesday, although it remains within its familiar range below the critical level of $ 1,900.

The yellow metal remains at the mercy of the developments of the coronavirus. Investors remain divided on promising vaccine results, on the one hand, while the growing risks of the coronavirus, amid the increase in cases and new blockades worldwide, stoke concerns about economic recovery on the other hand.

The optimism of the vaccine implies that there will be no additional need for fiscal and monetary stimulusas life could return to normal, which could probably keep the rise in gold in check.

At the time of writing, the yellow metal is trading practically flat on the day at $ 1,888, drawing some support from the persistent weakness of the US dollar. The worsening situation of the virus in the United States seems to weigh on the dollar.

During today’s American session, the attention of gold investors will be on US retail sales data and Fed Chairman Jerome Powell’s speech for new momentum. Meanwhile, the new direction of gold depends on the developments of the virus and vaccines.

Technical levels of gold

According to FXStreet analyst Omkar Godbole, the immediate bias would remain neutral as long as prices remain within Monday’s trading range of $ 1,864 to $ 1,899. A close above $ 1,899 would mean that the period of indecision is over with a bullish win. It would validate the drop in selling pressure near $ 1,864 observed on Monday and would open the doors at $ 1,933 (high of October 12). On the other hand, acceptance below $ 1,864 would expose the November 9 low of $ 1,850. “