Gold Price News and Forecast: XAU/USD bounce from sub-4H 200-SMA has stalled
|Gold Price Analysis: Bounce from sub-4H 200-SMA has stalled
Gold's overnight drop below the 4-hour chart 200-candle simple moving average (SMA) was short-lived, possibly due to US-China tensions. Technical charts, however, indicate the bounce could be undone during the day ahead.
The yellow metal found bids near $1,708 and rose back above the widely-tracked SMA of $1,711 to hit a high of $1,715 a few minutes before press time.
Gold to rise towards $1775 this week
The past weeks showed that hopes on vaccine offer great opportunities to sell USD/JPY and buy gold.
Risk assets traded higher early Tuesday morning to begin a holiday-shortened week, as optimism about a potential coronavirus vaccine built. However, our experience in the past weeks shows that such scenario only offers great opportunities to sell risk assets at good price.
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