- Gold maintains some weakness and remains close to key support zone.
- Optimism in markets does not favor the metal on Monday.
The Gold is erasing Friday’s gains and recently fell as low as $ 1,863 an ounce. It is trading at $ 1867, registering a slight drop from Friday’s close. The recovery from the $ 1850 zone has lost momentum and could be over.
Markets on Monday are rising modestly, supported by anticipation of advancements for another coronavirus vaccine. The European PMI data (preliminary) for November showed the majority of positive surprises, although not far from expectations. The US estimate will be known later.
The good mood in the markets is weakening the dollar. The DXY is trading very close to 92.00, at a low in months. Despite the optimism and the fall of the dollar, gold cannot benefit. The rise in Treasury yields on Monday is one factor that may be behind the weakness of the XAU / USD.
From a technical point of view, in the short term, the downward bias in gold continues. The $ 1850 zone is the key support to watch. The break below could lead to more volatility and deepen the correction. In the opposite direction, if it rises above $ 1885/90, downward pressures will ease.
Technical levels
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