Gold Price Analysis: XAU/USD consolidates daily gains above $1,800
|- XAU/USD is posting modest daily gains following Thursday's slide.
- Wall Street looks to open in the negative territory.
- US Dollar Index stays below 97.00 ahead of PPI data.
After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday. Nevertheless, the pair didn't have a difficult time erasing a portion of its recent losses and was last seen trading at $1,807, gaining 0.23% on the day.
Eyes on Wall Street
The heavy bearish pressure surrounding the major equity indexes in the US helped the greenback gather strength and weighed on XAU/USD on Thursday. Heightened political tensions amid the US Supreme Court's decision to allow Manhattan District Attorney Cy Vance Jr. to obtain President Donald Trumps financial records weighed on the sentiment.
Moreover, coronavirus cases in the US continued to rise and showed no signs of a slowdown to further impact the sentiment in a negative way.
At the moment, the S&P 500 futures are losing 0.6% on the day, suggesting that Wall Street could open in the negative territory on Friday. In case US stocks extend the slide, the USD could finish the week on strong footing and drag XAU/USD back toward $1,800. At the moment, the US Dollar Index is posting small daily gains at 96.80. However, the precious metal's safe-haven status is likely to help the pair limit its losses.
Technical levels to watch for
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