Where Did You Gold? XAU/USD Possible Drop by $20 From Session Highs

Source: FXSTREET

Spot gold slipped 0.2% to $1,837.05 an ounce at 8:10 a.m. in Kuala Lumpur time, after a 0.2% gain on Friday. The precious metal remains 21% higher this year after hitting a record in August. Gold steadied as investors tracked the deployment of the first Covid-19 vaccines in the U.S. and the continuation of talks over a stimulus bill.

XAU/USD is currently trading at $1,836 per ounce, reached a high of $1,855 on early Monday.

The gold price could drop to Friday's low of $1,824, under which the focus would shift to $1,764. Supporting the bearish trend case is the below 50 reading on the 14-day Relative Strength Index (RSI). 

On the other hand, the Dec 8 high of $1,875 is the level to beat for the bulls. A break higher would expose resistance near $1,9254, that level is currently housing the trendline falling from Aug 7 and Nov 9 high. 

FOLLOWME Overall Sentiment (As of 12:00 p.m.)

As shown above, the overall sentiment of FOLLOWME traders in this symbol leans slightly towards short-selling with a ratio of 50.43% while the rest of 49.57% is long position.