Gold plummeted on Monday, as risk on sentiment took over the markets. The sentiment was caused by news from Pfizer that it had finished testing its coronavirus vaccine and it is effective in more than 90% of cases.
The drop of the yellow metal found support in the monthly pivot point at the 1,901.26 level.
Economic Calendar Analysis
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims.
On Friday, the US Producer Price Index are scheduled to be released at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
XAU/USD short-term forecast
The bullion's drop found support in the monthly simple pivot point at 1,901.26. In addition, it is assumed that the psychological pressure of the 1,900.00 level also contributed to the pause of the drop.
In the near term future, the commodity price was expected to consolidate by trading sideways above 1,900.00.
Hourly Chart
On the daily candle chart, the yellow metal has dropped to the support of the 100-day simple moving average, which on Monday was located at the 1,901.60 level.
In the meantime, note that the 55-day SMA and the 38.20% Fibonacci retracement level did not manage to stop the commodity price's decline.
Daily Candle Chart
Traders remain long on Gold
On Friday, on the Swiss Foreign Exchange the sentiment was bullish, as of total open position volume 57% was long.
On Monday, despite the drop traders remained long, as 55% of volume was in long positions.
Meanwhile, in the 1000-pip range around the metal's price the pending orders were 72% to buy the metal.