- Gold stays below $1900 as virus woes outweigh vaccine hopes.
- XAU/USD formed long-legged doji on the daily sticks.
- Focus remains on the US Retail Sales and coronavirus data.
Gold (XAU/USD) recovers ground in European trading, although remains within its familiar trading range below the critical $1900 level.
The yellow metal remains at the mercy of the coronavirus developments. Investors remain divided over the promising vaccine results on one hand while growing virus risks, amid surging cases and new lockdowns globally, stoke concerns about the economic recovery on the other hand.
The vaccine optimism implies that there will no additional need for fiscal and monetary stimulus, as life could return to normal, which could likely keep gold’s upside in check.
At the time of writing, the bright metal trades modestly flat at $1888, drawing some support from the persistent weakness in the US dollar across its main peers. The worsening virus situation in the US appears to weigh on the greenback.
Next of relevance for the gold traders remain the US Retail Sales data and Fed Chair Jerome Powell’s speech for a fresh impetus. Meanwhile, a fresh direction in the metal hinges on the virus and vaccine developments.
Gold Technical levels
According to FXStreet’s Analysis, Omkar Godbole, the immediate bias would remain neutral as long as prices are held within Monday’s trading range of $1,864-$1,899. A close above $1,899 would mean the period of indecision has ended with a bull victory. It would validate the dip demand near $1,864 observed on Monday and open the doors to $1,933 (Oct. 12 high resistance). Alternatively, acceptance under $1,864 would expose the Nov. 9 low of $1,850.”
Gold: Additional levels
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