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· Gold looks to extend the downside, eyes on $1850

Key quotes

“Gold remains exposed to downside risks, as the risk-aversion on the global markets could deepen and revive the dollar’s recovery momentum, as investors take note of the new shutdowns worldwide and its likely impact on the global economic recovery. Also, the vaccine optimism seemingly faded, as its dissemination is seen unlikely before Spring 2021. The US docket highlights the Philly Fed Manufacturing Index, although the covid data will likely hog the limelight.”

“A test of the measured target $1822 cannot be ruled out in the coming days should the bulls fail to defend the crucial $1850/49 support area. That level is the confluence of the September month low and November 9 low.”

“Recapturing the $1873 barrier, the intersection of the bearish 21-HMA and the pattern support now resistance, is critical for the recovery to gain traction. Further up, strong resistance awaits at $1884, which is the convergence of the 100 and 200-HMAs.”

Gold at 1-week low as hopes rise of more rapid economic recovery

· Gold retreated to a one-week low on Thursday as encouraging developments relating to COVID-19 vaccines have raised hopes of a more rapid recovery in the global economy, even as new coronavirus cases continued to rise.

· Spot gold fell 0.4% to $1,863.12 per ounce by 0759GMT, having earlier hit its lowest since Nov.11, at $1,857.16, putting it on course for a second straight weekly decline.

· U.S. gold futures slipped 0.6% to $1,862.30.

· "Post the U.S. election, there is confidence in the global economy and gold's safe-haven appeal has been easing. Secondly, pandemic-related uncertainty is going to be decreasing because we're all hoping for the vaccine in the market soon," said Hareesh V, head of commodity research at Geojit Financial Services.

· COVID-19 vaccines from Pfizer Inc and Moderna Inc could be ready for U.S. authorisation within weeks, setting the stage for inoculation to begin as soon as this year,

U.S. Health and Human Services Secretary Alex Azar said on

Wednesday.

· "In the short-term, (gold) prices may continue to drift lower towards $1,800. We expect the next leg of the bull market to resume next month or January 2021," said Vincent Tie, sales manager at Silver Bullion.

· Increased coronavirus-driven restrictions in the United States, where the death toll crossed 250,000, caused Asian equities to fall from record highs, while bonds were buoyed by growing bets that the U.S. Federal Reserve may fill in the gap as uncertainties persist over a fiscal relief bill.

· Investors are waiting for U.S. jobs data at 1330 GMT for evidence on the state of the economy.

Vaccine Optimism Weakens Gold’s Safe Haven Appeal