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Gold recovered on Wednesday alongside the relative improvement market’s mood. The precious metal is currently trading in the $1,780.00 territory.
Gold prices advanced on easing demand for the US dollar, as stocks turned green following Tuesday’s setback.
The absence of first-tier events and relief news related to the coronavirus Omicron variant reinforced the sentiment. According to the World Health Organization, the current vaccines may protect from severe illness.
The XAU/USD Index retains its bearish stance according to the daily chart. Sellers reject the advance once again around directionless and converging 100 and 200 SMAs, while technical indicators hold near their recent lows within negative levels, although losing their bearish strength.
The price of gold is trading at USD 1,782 and higher by some 0.5% on the day after rising from a low of USD 1,772.30 and reaching a high of USD 1,794.62.
The Fed’s decision to retire the term ‘transitory’ has failed to boost the greenback which is arguable overbought in terms of positioning. This has led to a bid in the commodities and has underpinned gold as a perfect hedge for inflation risks.
Support levels: 1,771.80 1,758.80 1,745.20
Resistance levels: 1,796.00 1,803.85 1,815.53
