Gold Price Analysis: There is more scope to the downside, November 30 low at $1770 in sight

Gold (XAU/USD) has bounced-off a critical horizontal trendline support at $1765 on Wednesday. Nonetheless, technicals still favor the downside, and the mentioned $1765 support remains at risk, FXStreet’s Dhwani Mehta reports.

Key quotes

“Conflicting covid vaccine reports from Pfizer and Moderna, in the wake of its efficacy against the South African strain, keep the downside cushioned in the metal. If the advance in the Treasury yields resumes, it could once again fuel a fresh sell-off in gold prices. Such a move depends on the US weekly jobless claims and the sentiment on global markets.”

“Unless the XAU/USD bulls take out Wednesday’s high at $1796, the bearish bias remains intact. Further up, the previous month low of $1803 could be challenged.”

A breach of the $1765 key support could trigger a sharp drop towards June 2020 lows of around $1720.”