XAUUSD- moving lower on Tuesday nearing Monday’s low, some gains haven’t been able to turn things around. Precious metals earlier in the European session moved higher trying to restore the decline in the Asian session, but did not last long and returned to decline until the close of the US session. Investors paid serious attention to media headlines regarding the worsening of the virus outbreak especially in the UK. Gold traders may have fled to the USD which has also seen a short-term spike higher against many major currencies. The greenback’s strength was also seen in the USD index on Tuesday. The risk off atmosphere as a result of worsening global conditions may continue to influence investor decision making in the short term.
At the same time, Gold is trading above the 1.855 support. If the bearish momentum continues then the price projection can decrease to the support area at 1,832. In the opposite direction, if the bulls take control, Gold could jump up to test the resistance level around the 1,900 range again. The AO indicator is thinning into the neutral area and starting to enter the negative side, maybe showing some bearish tendencies going forward, but anything can happen amid the liquidity and volatility that decrease at the end of the year and who knows if there is a sudden movement.
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Ady Phangestu
Analyst – HF Indonesia
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