XAU/USD Dropped Below $1,860
Gold (XAU/USD) wavers within familiar ranges above the $1.800 level mainly supported by the broad-based US dollar weakness because of the coronavirus vaccine-driven global optimism. The US FDA gave a green light to Pfizer's vaccine early Thursday with authorization expected within days.
The XAU/USD pair has tumbled to the support provided by the $1.830 round level. If the predetermined support holds, it is likely that yellow metal could appreciate against the US Dollar within the following trading session.
Meanwhile, note that the exchange rate could face the resistance area formed by the $1.860 critical round figure mark barrier. If the given resistance holds, the price for gold could consolidate in a range of $1.860 to $1.830 before a clear direction of the breakout is seen. The market sentiment remains mixed leading to the rather flat price action for the moment.
However, the $1.830 level will be critical. If gold prices lose this handle, then we could expect further declines to the $1.800 level once again. A breach below this level will lead gold prices further south to test the $1.770 support zone which coincides with 50% retracement.