- Gold is witnessing a short hedging move on Wednesday from the $ 1,800 level.
- Optimism over the COVID-19 vaccine could limit any significant gains for the safe-haven precious metal.
- Investors are now turning to US macro data and FOMC minutes for new directional momentum.
The prices of the oro (XAU / USD) They move higher during the European session on Wednesday, staying close to the upper end of their daily range, just below the $ 1,815 level.
The precious metal has achieved find decent support near the $ 1,800 level, just above the technically significant 200-day SMA and, for now, it appears to have stopped its recent downward movement. The sustained selling bias of the US dollar has offered some support to gold prices, denominated in dollars, and has triggered some short coverage amid short-term oversold conditions.
Investors also seem inclined to lighten their bearish positions ahead of Wednesday’s top-tier US macro releases and the minutes of the last FOMC meeting. That said, the rise is more likely to remain limited in the middle of the optimism about progress on vaccines for COVID-19, which has been weighing on demand for traditional safe-haven assets, like gold.
This makes it prudent to wait for some solid continuation buying before confirming that the XAU / USD has found short-term support and positioning for any further bullish movements.
Market participants are now waiting for a lot of top-tier US macro data to get some short-term trading opportunities. In the economic calendar of the United States on Wednesday, the publications of the preliminary report of GDP (second estimate), durable goods orders, initial weekly jobless claims and final consumer sentiment index from the University of Michigan for November.
However, the key focus of attention will be on the minutes of the last FOMC meeting, which will be scrutinized for the possibility of further easing of monetary policy by the Fed in December. The Fed’s monetary policy outlook will play a key role in determining the next directional move. of yellow metal.
Technical levels of gold