Gold Price Analysis: XAU/USD fades Friday’s recovery above $1,850 despite vaccine hopes
Gold prices remain depressed near $1,870, down 0.10% intraday, during the early Monday morning in Asia. In doing so, the yellow metal fails to extend Friday’s bounce off $1,852.80 to near $1,880. The reason could be traced to the traders’ confusion amid mixed clues concerning the coronavirus (COVID-19) and vaccines as well as a lack of confirmation on the Brexit deal and the tussle between the US Fed and Treasury.
Gold Weekly Forecast: Coronavirus vaccine optimism hurts XAU/USD
After failing to break above $1,900 at the start of the week, Gold spent the majority of the week under modest bearish pressure and dropped to $1,850 area before staging a rebound on Friday. Nevertheless, XAU/USD closed the second straight week in the negative territory around $1,870.
The upbeat Industrial Production and Retail Sales data from China revived hopes for a steady global economic recovery and provided a boost to market sentiment at the start of the week. Additionally, Moderna announced that its coronavirus vaccine candidate was 94.5% effective in the latest trials and noted that it will be seeking authorization for emergency use of the vaccine in the US in the coming weeks.
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