Traders remain nervous as two starkly different narratives on the coronavirus continue to play out, keeping the sentiment around gold (XAU/USD) undermined. The risk sentiment seesaws amid the covid vaccine optimism and rapid rise in infections and new shutdowns in the US.
Meanwhile, if the risk aversion deepens amid resurfacing global economic concerns over the covid growth, the safe-haven US dollar is likely to draw bids and weigh negatively on gold. Let’s see if the charts also back gold’s bearish narrative?
Gold: Key resistances and supports
The Technical Confluences Indicator shows that the XAU/USD pair remains exposed to the additional downside amid a lack of health support levels.Therefore, the next relevant cushion for the gold bulls is seen at $1860, the previous month low.A failure to defend the latter could threaten the critical support at $1849, which is the convergence of the September low and pivot point one-month R1.Alternatively, the […]
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