Golden Scout - XAU/USD Stuck in Range Below $1900, Awaits Fresh Impetus
Gold’s upside attempts continue to remain capped below the $1900 mark, as the metal extends its $20 range play in the European session.
Despite the latest leg higher from session lows of $1887, the further upside in the spot appears elusive, as the US dollar stages a comeback across the board.
The risk-rally driven by the optimism over the vaccine progress seems to fade amid resurfacing concerns over the surging coronavirus cases worldwide. The safe-haven demand for the greenback returns, lifting the US dollar index from four-day lows of 92.47 to 92.64, at the press time.
However, fresh virus curbs announced in some of the US states and expectations of December restrictions in Germany threaten the global economic recovery and weigh on the Treasury yields, in turn, underpinning the sentiment around non-yielding gold.
Looking ahead, fresh global virus data and sentiment on Wall Street will direct the near-term flows in gold. The US economic calendar is data-dry and hence, the bright metal will likely remain at the mercy of the US dollar dynamics.
Immediate resistance awaits at the $1900 key level, above which the bulls will gear up for a test of the Oct 27 high of $1911.46 To the downside, Friday’s low of $1874 is the level to beat for the bears. The next cushion is aligned at $1860, the October low.
Edited 16 Nov 2020, 18:26
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