- The recovery for gold remains limited below the $ 1,900 area.
- XAU / USD has been fueled by USD weakness with a rebound in risk appetite.
Gold futures they have tried to ignore the downward pressure experienced earlier this week to make a moderate recovery on Thursday and Friday. The yellow metal, however, has been unable to extend its recovery beyond $ 1,896 in a cautious market mood.
Gold, trying to set a low at $ 1,850
The XAU / USD it was up on Friday, after a three-day consolidation period, after a 4.5% selloff on Monday. The news that the COVID-19 vaccine developed by Pfizer was 90% effective increased risk appetite at the opening of the week and caused a fluctuation in gold futures.
Bullion prices fell to $ 1,850 later, where they found support at four-month lows, to consolidate below $ 1,880 / 90 for the past three days. Gold continued to move sideways and risk sentiment waned as fears about the economic fallout from the second wave of COVID-19 have dampened hopes about vaccine progress.
From a technical standpoint, the XAU / USD should present a clear breakout of the $ 1,900 / 05 area, breaking the confluence of the 50 and 100-day SMAs. This could increase the bullish traction to attack $ 1,965 / 70 (Sept. 16 highs, Nov. 6) and $ 1,990 (Sept. 1 low).
On the downside, any further drop below $ 1,850 (November 9 lows, late September lows) would provide further impetus to the bears and could push gold prices towards $ 1,790 (mid-July lows and mid-July simple mobile of 200 days) and $ 1,750 (minimum of June 26)
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