- XAU/USD remains flat above $1,800 after a $70 decline on the week.
- Gold's upside attempt remain capped at $1,815.
- Bullion is hovering above important support at $1,795.
Gold futures have remained practically flat between $1,800 and $1,810 for the second consecutive day on a thin market session amid the US Thanksgiving holiday. The yellow metal is on a consolidative mood after having lost about $70/oz this week.
Gold ticks up on US dollar weakness
Gold prices appreciated on early trading as the US dollar hit fresh multi-month lows against a basket of the most traded currencies following the release of FOMC minutes on Wednesday. The Federal Reserve hinted at the possibility of increasing the monetary stimulus at December’s meeting, which added negative pressure on the US dollar.
Upside attempts, however, have been capped below $1,815 again on Thursday. The moderate risk aversion, with the investors shifting their focus from the progress on the COVID-19 vaccines to the reality of the spreading pandemic and prospects of long-lasting lockdowns has supported the safe-haven US dollar, weighing on demand for gold.
XAU/USD: hovering above important support at $1,795
From a technical point of view, XAU/USD is attempting to set a bottom above key support at $1,795 (mid-July lows and 200-day SMA) below next areas of interest are $1,760, the 50% Fibonacci Retracement of the March – July rally and $1,700 (June 15 lows).
On the upside, the pair should break $1,815 (November 25 high) and extend beyond $1,850 to shrug off downside pressure and open the path towards $1,900 and $1,910 psychological level and 100-day SMA.
Technical levels to watch
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