Gold Price Analysis: XAU/USD buyers keep $1,900 on radar amid market optimism
|- Gold keeps recovery moves from $1,864 despite recently easing from $1,896.
- Moderna’s vaccine trials keep markets hopeful despite virus woes.
- Brexit news, updates from Johnson & Johnson offer the latest positive push.
- Risk catalysts to keep the driver’s seat amid a light calendar.
Gold picks up bids around $1,888, up 0.07% on a day, during the early Tuesday’s Asian session. The yellow metal recently gained, after the initial $30 drop, as global markets turned optimistic on the coronavirus (COVID-19) vaccine. Also favoring the risk-on mood could be the Brexit news as well as the US dollar weakness.
J&J, Moderna keeps markets upbeat…
Having earlier heard that Moderna’s vaccine has a 94.5% effective rate and is easy to distribute, AP News recently came out with the headlines suggesting the start of the two-dose vaccine trials from Johnson and Johnson. Global markets are optimistic to find a cure to the major disease that has roiled macros so far in 2020. In doing so, bulls are also watching over the US covid fashion that indicates local lockdowns. On the other hand, virus conditions in Europe and the UK have been recovering off-late, though not much positive.
Elsewhere, news that the much-awaited Brexit trade deal between the European Union (EU) and the UK, can be expected early next week, as per The Sun, also favored the risk-tone sentiment.
That said, S&P 500 Futures look for clear direction while taking rounds to 3,625/30 after Wall Street closed on the positive side by the end of Monday’s trading session.
Given the recent positive updates concerning the virus vaccine and Brexit, gold prices can keep the last week’s recovery moves from September lows. Though, challenges to the reopening plans in some of the US states may offer intermediate stop to the buyers.
Technical analysis
Unless breaking 50-day EMA, currently around $1,899.50, gold bulls remain cautious. Meanwhile, 100-day EMA and the recent lows, respectively near $1,876 and $1,850, restrict the metal’s short-term downside.
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