Gold continues to feel the bearish pressure after facing rejection at 1,818 for two consecutive days. Despite the uncertainty about the coronavirus vaccine development and continued escalation in the infections globally, gold remains vulnerable .
Gold: Key resistances and support
XAU/USD is likely to find an immediate support barrier at 1,800, which is psychological round figure mark. This price was 2011 November high, a key level for traders to look on which coincides with the lower boundary of a bearish parallel channel .
The overall trend appears to bias toward the downside, as suggested by the formation of consecutive lower highs and lower lows. The bears will then challenge the 1,770 cap, the intersection of the Fibonacci 50% retracement of bullish move from 20 March to 7 August.
On the flip side, strong resistance awaits at 1811 barrier will guard the further upside. To the upside, any retracement back toward the 1,850-1,860 level could see additional selling opportunities for investors.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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