Gold Can’t Seem to Rise

Because of the news relating to the anti-coronavirus vaccines, which is updated all the time, the price of Gold can’t start an uptrend, even a short-term one. On Monday, December 14th, the troy ounce of the precious metal is trading at $1837.10, although it easily reached $1875 last week.
 
Investors truly believe in a better tomorrow, when anti-coronavirus vaccines are ready, thus turning the global pandemic backward. Under such conditions, it’s quite logical that investors’ demand for “safe haven” assets is extremely low.
 
Market players are currently keeping a close eye on the information that comes from the US Centers for Disease Control and Prevention (CDC), which has already made COVID 19 vaccine recommendations. In other words, the massive vaccination campaign is at the doorstep.
 
As we can see in the H4 chart, XAU/USD is consolidating around 1838.00. Possibly, the metal may break the range to the downside to reach 1800.60 – this might be the first structure within another descending wave towards 1700.00. After reaching the latter level, the market may form a new ascending structure with the target at 2012.80. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0 within the histogram area, thus implying further descending movement on the price chart.
 

 
In the H1 chart, after almost finishing the consolidation range around 1838.00, XAU/USD is trading to break it downwards. Possibly, the asset may fall to reach 1800.70 and then start a new growth to test 1830.00 from below. After that, the instrument may resume trading within the downtrend with the target at 1740.00. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal is moving below 50, thus confirming that the asset may continue its decline.
 


By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
 
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.