Gold Price Analysis — December 9

Gold Price Analysis — December 9

Gold (XAU/USD) traded lower through the Asian session on Wednesday and recorded a new two-day low around $1855, although it lacked any bearish follow-through strength. The prevalent upbeat risk appetite in the market is seen as one of the major factors undermining demand for the safe-haven asset, though the lasting US dollar (DXY) weakness helped limit any sustained downside move.

The global market risk mood continued to be bolstered by the recent positive developments surrounding COVID-19 vaccines. Johnson & Johnson (NYSE: JNJ) recently reported that it could have a late-stage trial result for a single-dose vaccine by January, which is earlier than expected. Meanwhile, Pfizer (NYSE: PFE) has cleared another hurdle after the US FDA found no new safety or efficacy concerns in the recent analysis of its vaccine candidate.

In other news, lasting prospects for additional US stimulus measures to bolster the economy continued to weigh heavy on the greenback and lent some support to the dollar-denominated commodity. Furthermore, a goodish pickup in the US Treasury bond yields failed to extend any support for the USD, although it kept a lid on any gains in the non-yielding commodity.

Moving on, there will be no major market-moving data release today, leaving gold and the USD at the mercy of the global risk mood and new developments surrounding the Coronavirus pandemic.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — December 9

XAU/USD Major Bias: Sideways

Supply Levels: $1865, $1876, and $1887

Demand Levels: $1855, $1849, and $1830

The XAU/USD is currently trading within an upward-facing channel, as volatility slips. The precious metal is currently trading close to the base of our channel around $1855 (also the daily low) and could find a boost that could take it to the $1887 resistance. However, the commodity needs to facilitate a decisive break above $1865 to renew its bullish momentum.

On the other hand, a slip below the $1855 zone should get immediately supported by the $1849 area.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.