On Monday, spot gold dropped 1.8% to a 4-month low of $1,838, as sentiment was dampened by Covid-19 vaccine development. Pharmaceutical giant AstraZeneca said its Covid-19 vaccine AZD1222 achieved an average efficacy of 70% and no hospitalisations or severe cases of the disease were reported in participants receiving the vaccine. This follow promising results from Pfizer's and Moderna's vaccines.
From a technical point of view, pressure is mounting on spot gold as shown on the daily chart. It has now broken below a bearish descending triangle pattern, and has probably confirmed the bearish evening star formed in early November. The level at $1,900 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,780 and $1,735 respectively.
From a technical point of view, pressure is mounting on spot gold as shown on the daily chart. It has now broken below a bearish descending triangle pattern, and has probably confirmed the bearish evening star formed in early November. The level at $1,900 might be considered as the nearest resistance, while the 1st and 2nd support are expected to be located at $1,780 and $1,735 respectively.
Source: GAIN Capital, TradingView
