- XAU/USD edges lower, with upside attempts capped below $1,880.
- The precious metal struggles on a moderate risk-on market.
- Longer-term, gold remains trading back and forth between $1,850 and $1,900.
Gold futures remain heavy on Wednesday, with prices dropping for the third day in a row amid a moderate risk-on mood. Bullion prices remain limited below $1,880, with downside attempts contained above $1,860 so far.
The precious metal lost footing during the European trading session, as the drugmaker Pfizer announced more positive news about the latest tests of its COVID-19 vaccine.
Pfizer’s news comes after Moderna announced more promising coronavirus vaccine tests earlier this week. This has contributed to easing market concerns about the economic impact of the pandemic, as global infections reach new record levels, and has triggered a moderate appetite for risk.
XAU/USD retreated from $1,885 to session lows at 1,865 before bouncing up on the early US session. Gold bulls, however, have been stopped again at $1,865 and the precious metal has pulled back to $1,875, half-way through the day’s trading range.
Gold remains trapped between $1,850 and $1,900
Bullion keeps moving without a clear direction within a $50 range below $1,900, consolidating losses after last week’s slump from $1,960 highs. On the upside, the pair should break above $1,900 and $1,910 psychological level and the confluence of the 50 and 100-day SMAS to ease bearish momentum and return towards $1,960 (November 9 high) and $1,995 (September 1 high).
On the contrary, further decline below $1,850 (later-September lows) would increase bearish pressure and might drive the pair towards $1,795 (mid-July lows) and finally $1,760, the 50% Fibonacci Retracement of the March – July rally.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays weak below 0.6500 after Australian labor data
AUD/USD keeps losses below 0.6500 in the Asian session on Thursday, showing little to no reaction to the Australian jobs data for May. Trade uncertainties, escalating geopolitical tensions and the Fed's hawkish pause weigh on investors' sentiment, undermining the risk-sensitive Aussie.
USD/JPY recovers above 145.00 as US Dollar's haven demand strengthens
USD/JPY is recovering ground above 145.00 in Thursday's Asian trading. The haven demand for the US Dollar gathers strength on likely US attacks on Iran coming this weekend. Hawkish hold by the Fed on Wednesday also supports the Greenback while the Japanese Yen struggles to retain control, despite risk aversion.
Gold price bounces off weekly low; bulls seem reluctant amid hawkish Fed
Gold price attracts some dip-buyers during the Asian session and reverses part of the previous day's slide to the weekly low amid a revival of safe-haven demand, bolstered by trade uncertainties and rising geopolitical tensions. Moreover, a subdued USD price action acts as a tailwind for the bullion.
Bitcoin, Ethereum, XRP hold steady as Federal Reserve leave rates unchanged
Bitcoin and altcoins, including Ethereum, XRP, and Solana, saw slight movements on Wednesday as the crypto market stayed resilient following the Federal Reserve's decision to leave rates unchanged at 4.25%-4.50%.
In the Eurozone, inflation is also a monetary phenomenon
Monetary aggregates continue to be closely monitored by the European Central Bank (ECB), a sign that, despite the passage of time and the increasing complexity of financing circuits, quantitative theory remains relevant.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.