Gold bears the burden of the global rush to equities while standing on the slippery ground near $1,857, down 0.75% intraday, ahead of Wednesday’s European session.
Although record-high coronavirus (COVID-19) cases and the death toll from the US joins Brexit worries and the US-China tussle to challenge the market sentiment, hopes that the American covid stimulus is on the way favor stocks. Also on the positive side could be expectations that the vaccine developments will soon tame the global pandemic.
Meanwhile, fears of the hard Brexit and the first contraction in the Chinese Consumer Price Index (CPI) since late-2009 fails to recall the bears.
While portraying the market mood, stocks in Asia-Pacific and the futures are also positive whereas the US 10-year Treasury yields rise 2.5 basis points to 0.93% by press time.
Read: Asian Stock Market: Chatters over vaccine, stimulus favor bulls to track Wall Street gains
Gold: Key levels to watch
Failures to cross the $1,870 upside barrier, comprising SMA 10 on one hour (1H), SMA 50 on 15M and Pivot Point one-week (W1) Resistance 1, portrays underlying weakness in gold prices.
However, SMA 5 on one day (1D) and SMA 100 on 1H together offer strong support around $1,850 to break for the gold sellers.
Should the bears manage to conquer the $1,850 support, Fibonacci 38.2% on one-month (1M), around $1,843, can return to the charts.
Meanwhile, Fibonacci 61.8% one-day, SMA 200 on four-hour (4H) and the middle band of Bollinger on the 1H and 15-minute play, around $1,866/67, can offer immediate resistance during the bullion’s fresh upside targeting $1,870 hurdle.
It should also be noted that the clear break above $1,870 can direct gold buyers toward the mid-November highs near the $1,900 threshold.
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