Gold (XAU/USD) struggled to capitalize on the weekly bullish gap opening on Monday and remained capped near the $1875-76 resistance zone. A modest uptick in the US bond yields prompted some fresh selling around the yellow metal on Tuesday but concerns about COVID-19 vaccine supplies might help limit any further losses for the commodity, FXStreet’s Haresh Menghani reports.

Key quotes

“Concerns about the delay in COVID-19 vaccine supplies helped limit the downside. Moving ahead, the broader market risk sentiment will play a key role in influencing the intraday movement for the commodity. This, along with the US bond yields and the USD price dynamics, will also be looked upon for some meaningful trading opportunities.”

“A sustained move beyond the $1875-76 horizontal resistance should pave the way for an extension of the recent bounce from seven-week lows and push the metal to the $1900 round-figure mark. The momentum could further be extended towards the $1922-24 supply zone en-route the next major hurdle near the $1960 region.”

“The ascending trend-line, currently around the $1845-44 region, might continue to protect the immediate downside. A convincing break below will negate the constructive outlook, turning the commodity vulnerable to weaken further below the $1830 intermediate support and slide back to challenge the $1800 mark.”

 

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