Gold (XAU/USD) has cleared the $1,900 level on Monday, surging 1% to reach over one-week highs. The precious metal has been moving higher of late and traded back above $1,900. Earlier today before sellers forced the price back down to just above $1,850. This sell-off came despite a strong risk-off market theme as rising Covid-19 rates, and mutations alarmed investors.
US Congress reached an agreement on a $900 billion COVID-19 relief aid package. Gold also benefited from the coronavirus-induced fresh lockdowns which are boosting demand for the US dollar.
Gold Price Chart: Key Levels
XAU/USD pair has finally tested out the key $1900 round figure mark, which coincides with the upper boundary of a bearish channel. Immediate resistance awaits at the daily high around $1,900. Acceptance above could open doorways to the next barrier which resides at $1,930.
On the flip side, $1860 act as immediate cushion for gold. Bears will then eye a sustained move below $1,860 if the price fails to hold, the intersection of the Fibonacci 61.8% one-month to accelerate the downward pressure. Further south, the next relevant support is seen at $1,776 which is the monthly open price.