Gold Price Analysis: XAU/USD's daily chart shows temporary uptrend exhaustion
Gold is sidelined around $1,809 per ounce at press time with the daily chart MACD histogram, an indicator used to identify trend changes and trend strength, reporting a bearish divergence.
A bearish divergence occurs when an indicator prints a lower high, contradicting a higher high on price and is reflective of buyer exhaustion. As such, the metal looks vulnerable to price pullback. Moreover, the bearish divergence of the MACD would remain valid as long as prices are held below the recent high of $1,818.
Gold Price Analysis: XAU/USD struggles above $1,800 amid risk-on mood
Gold drops to $1,808.30 during the pre-Tokyo open Asian session on Wednesday. The bullion has so far remained in the positive territory during the week. Though, $1,807 to $1,811 area seems to restrict the quote’s immediate upside moves.
The safe-haven asset recently took clues from the market’s upbeat mood. While Wall Street’s performance offered initial push to the risk-on sentiment, increasing odds of the coronavirus (COVID-19) vaccine helped to extend the optimism. In doing so, the Sino-American tension and surge in the pandemic figures seem to have been ignored.
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