XAUUSD investor interest in gold rises again

XAUUSD investor interest in gold rises again. The precious metal is correcting upward but is still below the psychological level of 1800.00, trading around $1793 an ounce. The news of detecting a new strain of coronavirus in South Africa has made serious adjustments to the dynamics of prices in world markets. Air carrier stocks plummeted on the back of statements from the EU, UK, and India about tightening border controls and restricting flights to South Africa.

The number of new speculative positions in gold increased for seven weeks in a row, and from 168.4K reached the January levels of 259.8K. The weekly report on changes in investor positions by the Commodity Futures Trading Commission (CFTC) will publish tonight, but the week will be the eighth consecutive week of growth.

When oil is sharply declining, and the USD Index is unstable, gold remains the only protective asset with sufficient capacity, and this week will show how much investors are ready to trust it. Of course, there are still expectations regarding the tightening of monetary policy from the US Federal Reserve, but in the current conditions of uncertainty, the regulator may take a break, which will also benefit the instrument’s quotes.

Support and resistance

The price has returned to a sideways channel on the global chart, below $1800 per ounce. After last week’s decline, technical indicators are uncertain: the fast alligator EMAs move close to the signal line, and the AO oscillator histogram forms downward bars near the transition level.

Resistance levels: 1830.0, 1871.0.

Support levels: 1764.0, 1721.0.

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