Gold Price News and Forecast: XAU/USD fails to benefit from recent risk aversion
Gold Price Analysis: Trapped in descending triangle amid risk-off
Gold is struggling to shine amid fresh risk-off in the markets with prices trapped in a descending triangle pattern on the 4-hour chart. So far, the top end of the triangle, currently at $1,508, has proved a tough nut to crack. A breakout would imply an end of the sell-off from recent highs above $1,700 and could yield a rally to $1,550.
Alternatively, a triangle breakdown would suggest a continuation of the sell-off from $1,700 and expose support located at $1,445 (November low). At press time, the yellow metal is changing hands at $1,496 per Oz, representing a 0.11% drop on the day, even though the futures tied to the S&P 500 index are down 5%.
Gold fails to benefit from recent risk aversion, slips below $1,500
Gold prices drop 0.80% to $1,486, intraday low near $1,483, after the fresh risk-off in the markets amid the early Monday morning in Asia. The latest catalysts come from the US where policymakers keep failing to announce the much-awaited stimulus while the coronavirus (COVID-19) numbers are on a spike.
The US Senate members fail to pass onto the much-awaited COVID-19 Bill during the first round of voting. The opposition Democrats are indicating further revision to the ruling Republicans, which in turn could delay the rolling out of the much-awaited stimulus.
Author
FXStreet Team
FXStreet
