Gold collapses after vaccine news further boosted risk appetite
Spot gold collapsed on Monday, being so far down 4.8% for the day, in the biggest daily fall since early August.
The safe-haven metal was sold after news that test for coronavirus vaccine showed more than 90% prevention in a study that greatly boosted risk appetite on hopes in speeding the economic recovery from the pandemic.
Fresh fall has erased all pre-US election gains, with bears pressuring key supports at $1848 (lows of pullback from $2074 record high) and eyeing next pivot at $1836 (Fibo 38.2% of $1451/$2074 upleg).
Clear break of these levels would open way for deeper correction and sideline hopes for fresh attempts through psychological $2000 barrier.
Broken base of thick daily cloud and a cluster of converged daily MA’s at $1900 zone mark key resistances which are expected to keep the upside protected and maintain bearish stance.
Daily studies turned to full bearish setup, adding to negative sentiment.
Res: 1881; 1900; 1914; 1927
Sup: 1848; 1836; 1805; 1782