Gold Price News and Forecast: XAU/USD charts mild recovery after Monday's 4.56% crash
|Gold Price Analysis: XAU/USD recovers from 6-week low but bias remains bearish
Gold is currently trading near $1,877 per ounce, representing a 0.79% gain on the day, having hit a low of $1,850 during the overnight trade. That level was last seen on Sept. 28.
While prices have bounced from six-week lows, Monday's bearish engulfing candle is still valid. The safe-haven metal fell by 4.56% on Monday to register its biggest single-day decline since Aug. 11. The sharp slide came after the US pharma giant Pfizer announced positive results of coronavirus vaccine, boosting risk appetite. Besides, the sell-off engulfed or erased gains in the preceding six trading days.
Gold collapses after vaccine news further boosted risk appetite
Spot gold collapsed on Monday, being so far down 4.8% for the day, in the biggest daily fall since early August.
The safe-haven metal was sold after news that test for coronavirus vaccine showed more than 90% prevention in a study that greatly boosted risk appetite on hopes in speeding the economic recovery from the pandemic.
Fresh fall has erased all pre-US election gains, with bears pressuring key supports at $1848 (lows of pullback from $2074 record high) and eyeing next pivot at $1836 (Fibo 38.2% of $1451/$2074 upleg).
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