- A strong pickup in the USD demand prompted some intraday selling around gold.
- The prevalent risk-on environment further undermined the safe-haven commodity.
Gold has been whipsawed, failing to hold onto gains through the mid-European session and was last seen trading in the neutral territory, around the $1,915 region. But the yellow metal is set to test the November high at $1,965.84 ahead of the September high at $1,973.8
A solid US dollar rebound from the lowest level in nearly three years was seen as one of the key factors that prompted some fresh selling of Gold. Prospects for a more aggressive US fiscal spending in 2021 increased further following the Democratic sweep in the crucial US Senate runoff elections in the state of Georgia
From the one hand, it is likely that yellow metal could gain support from the critical round figure mark near $1,900 which coincides with the breakout area of a 5-month old bearish descending channel and extend gains against the US Dollar in the short term. Failure to break $1,900 could open doorways to next barrier which resides at $1,960 and followed by psychological level at $2,000 which coincides with fibonacci expansion 161.8%.
