Gold Price Analysis: XAU/USD moving sideways between $1,880 and $1,865
|- XAU/USD edges lower, with upside attempts capped below $1,880.
- The precious metal struggles on a moderate risk-on market.
- Longer-term, gold remains trading back and forth between $1,850 and $1,900.
Gold futures remain heavy on Wednesday, with prices dropping for the third day in a row amid a moderate risk-on mood. Bullion prices remain limited below $1,880, with downside attempts contained above $1,860 so far.
The precious metal lost footing during the European trading session, as the drugmaker Pfizer announced more positive news about the latest tests of its COVID-19 vaccine.
Pfizer’s news comes after Moderna announced more promising coronavirus vaccine tests earlier this week. This has contributed to easing market concerns about the economic impact of the pandemic, as global infections reach new record levels, and has triggered a moderate appetite for risk.
XAU/USD retreated from $1,885 to session lows at 1,865 before bouncing up on the early US session. Gold bulls, however, have been stopped again at $1,865 and the precious metal has pulled back to $1,875, half-way through the day’s trading range.
Gold remains trapped between $1,850 and $1,900
Bullion keeps moving without a clear direction within a $50 range below $1,900, consolidating losses after last week’s slump from $1,960 highs. On the upside, the pair should break above $1,900 and $1,910 psychological level and the confluence of the 50 and 100-day SMAS to ease bearish momentum and return towards $1,960 (November 9 high) and $1,995 (September 1 high).
On the contrary, further decline below $1,850 (later-September lows) would increase bearish pressure and might drive the pair towards $1,795 (mid-July lows) and finally $1,760, the 50% Fibonacci Retracement of the March – July rally.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.