- Gold consolidates its recent strong gains around the $ 1,800 level, close to two-month highs.
- New nerves surrounding COVID-19, falling US bond yields and the outlook for a weaker USD support expectations of additional earnings.
The oro it has remained trapped within a tight trading range during the European session on Thursday, consolidating its recent gains b, near two-month highs.
The precious metal has struggled to capitalize on the strong bullish movement of the previous day and has witnessed moderate and limited price action within a range during the first half of trading action on Thursday. Having said that, short-term bias remains in favor of bulls and supports the prospect of additional earnings.
US dollar remains weak near multi-week lows amid the diminishing odds of an earlier-than-expected Fed monetary policy tightening and dollar-denominated gold could offer some price support. The dollar has been further pressured by declining U.S. Treasury yields, which tends to benefit the non-performing yellow metal.
In the meantime, fears about another dangerous wave of COVID-19 infections have continued to weigh on investor sentiment and it has been made evident by the prevailing sentiment of caution in the stock markets. This has been seen as another factor that should act as a tailwind for the safe haven XAU / USD, reaffirming the constructive perspective.
Even from a technical perspective, last week’s move above the $ 1,760-65 region validated a bullish double-bottom breakout. Therefore, a further move beyond the $ 1,800 level will be seen as a new trigger for the bulls and will push the XAU / USD towards the next big hurdle near the $ 1,818-19 region.
Gold technical levels
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