Gold Comes Under Immense Bearish Pressure as Market Mood Stays Positive

Gold (XAU/USD) climbed modestly in the early European session and was last spotted trading at $1812. The yellow metal found strong support at the $1800 psychological line yesterday, which appears to be stalling any further decline for the commodity. Meanwhile, sustained weakness surrounding the US dollar (DXY) has also extended some support to the dollar-denominated precious metal.

Investors appear to be very cautious of taking any aggressive bets on gold ahead of the highly-anticipated US FOMC meeting minutes. That said, a decent bullish move for gold seems unlikely at this point, given the current market risk mood and optimism over potential COVID-19 vaccines.

This status makes it advisable to wait for a sustained move in either direction before placing any trades on the XAU/USD.

Moving on, market participants will be looking at the US economic docket today—which features the release of the preliminary GDP report, Durable Goods Orders, Initial Jobless Claims, and final Michigan Consumer Sentiment Index for November—for clues.

Most importantly, markets will be awaiting the release of the FOMC meeting minutes later today, which will give insight into the possibility of further policy easing by the Fed in December. The Fed’s policy outlook will play a key role in determining the next directional move for the non-yielding commodity.

Gold (XAU) Value Forecast — November 25

XAU/USD Major Bias: Bearish

Supply Levels: $1849, $1860, and $1876

Demand Levels: $1800, $1792, and $1777

The XAU/USD is under intense technical and fundamental pressure, as it swiftly fell through several major supports yesterday. Meanwhile, gold has entered a tight consolidation range between $1815 and $1800 as we anticipate further declines.

The commodity has to facilitate a sustained move above the $1849 resistance to flip its bearish bias.

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