- XAU/USD’s upside attempts remain capped by 200-DMA
- Technical set up on the daily chart favors the bears.
- Focus remains on US data, stimulus and vaccine news.
Gold (XAU/USD) fails to resist above the $1850 level once again, as sellers return in early European trading.
Despite the latest leg down, gold prices remain in a familiar range of around $1840-45 levels, awaiting fresh impetus from the US economic data.
The US dollar clings onto its recovery gains across its main rivals, as the risk-off action in the US stock futures weighs on the market mood amid ongoing Wall Street speculative trades and vaccine concerns.
Gold Price Chart: Daily
From a technical perspective, the XAU bears remain hopeful so long as the price makes a sustained move above the critical 200-daily moving average (DMA), now at $1851.
Gold bulls have failed to find acceptance above the latter over the past six trading sessions, leaving the downside risks intact in the metal.
Therefore, Thursday’s low of $1834 could be challenged en route the January 13 low at $1803. The Relative Strength Index (RSI) edges higher but remains the midline, backing the case for the sellers.
Alternatively, 50-DMA at $1857 could test the bulls’ commitment.