Gold Price Analysis: XAU / USD Approaches 200 Hour SMA

Gold is currently trading near $ 1,872 an ounce, having nearly tested the 200-hour simple moving average (SMA) of $ 1,876 a few minutes before the press time. Buyers failed to gain a foothold above that average on Friday.

Despite the latest rebound from long-standing $ 1,850 support, the immediate bias remains neutral. This is because the decreasing trendline of the hourly chart is still intact. A break above this diagonal resistance would open the doors to $ 1,900.

Chances of a bullish breakout look grim, as prospects for an early coronavirus vaccine rollout currently outweigh fears of economic restrictions to control the second wave of the virus, as evidenced by the rise in equity futures. American. As such, the metal is unlikely to attract strong port demand.

On the downside, the Asian session low of $ 1,868 is the level to beat for the bears. A breach there would bring attention back to the key support at $ 1,850.

pic source: fxstreet