Gold Price Analysis: XAU/USD’s path of least resistance is down, $1913 back in sight – Confluence Detector
Following Tuesday’s two-way wild swings, Gold (XAU/USD) returns to the backseat, as the haven demand for the US dollar remains in vogue amid the risk-off action in the global stocks. The sentiment soured on rising US-Sino tensions, US fiscal deadlock and pessimism over the coronavirus vaccine. AstraZeneca COVID-19 vaccine trial was put on hold over safety concerns.
Although the dovish ECB expectations and falling Treasury yields offer some support to the yieldless gold. Combined. Let’s take a look at the key technical levels for trading gold amid a light US docket and heading towards Thursday’s crucial ECB policy decision.
Gold Price Analysis: XAU/USD fades pullback from 50-day EMA as market sentiment worsens
Gold prices extend the late-US session weakness while staying heavy around $1,931/30 amid the early Wednesday in Asia. In doing so, the yellow metal fails to portray the rush to risk-safety, despite bounding off 50-day EMA, as the US dollar becomes the market favorite. Among the major catalysts, the Sino-American tussle and Brexit talks preceded pessimism surrounding the US stimulus talks and the EU-UK negotiations over post-Brexit trade relations. It should also be noted that the US dollar’s gains were the major burden on the yellow metal despite the risk-off mood.
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