Gold Intraday Gathering Upside Momentum

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By :  ,  Financial Analyst

Gold Intraday: Gathering Upside Momentum

On Monday, spot gold gained 0.8% to $1,957 as the U.S. dollar eased. Reuters reported that AstraZeneca's Covid-19 vaccine trial in the U.S. remains on hold as regulators are still examining the serious side effect on the British patient. Earlier, the pharmaceutical giant said it has resumed clinical trials in the U.K..

Meanwhile, the Federal Reserve is expected to keeps its dovish tone after its FOMC meeting mid-week.

From a technical point of view, spot gold is gathering upside momentum as shown on the 1-hour chart. It may have formed a rounding bottom pattern, with prices trending to test the upper boundary of its recent consolidation range. The level at $1,937 may be considered as the nearest support, while the 1st and 2nd resistance are expected to be located at $1,974 and $1,992. Alternatively, a break below $1,937 would suggest that the next support at $1,920 may be challenged.

Source: Gain Capital, TradingView

Related tags: Commodities Gold

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