Gold attempts a bounce from weekly lows near $1855, as the bulls recapture the $1860 mark despite the risk-aversion fuelled by the relentless rise in the coronavirus cases on both sides of the Atlantic.
Markets appear to take profits on their short positions after the price once again held onto the critical $1850 support. Further, the yieldless gold derives support from the sell-off in the U.S. Treasury yields amid a lack of demand for riskier assets.
However, gold’s recovery attempts seem shallow, as the haven demand for the U.S. dollar remains in vogue amid the reignition of the global economic concerns. Spiking virus cases and fresh lockdowns announced in the U.S., Australia and Europe threaten the prospects of an economic recovery, which weigh on the vaccine enthusiasm.
After Pfizer and Moderna, AstraZeneca announced promising results from its covid vaccine trial, adding that the final results from the phase 3 trial is expected in weeks.
Attention now turns towards the U.S. Philly Fed Manufacturing and weekly Jobless Claims data for fresh hints on the economy. The latest covid stats from the U.S. will be also closely eyed.
Gold technical levels
Immediate resistance awaits at the $1874 daily high, above which the bulls will gear up for a test of the critical $1891 barrier. To the downside, October low at $1860 could be retested, below which is the next cushion is aligned at $1850/49, the September month low and November 9 low.
Gold: Additional levels