Gold Price Analysis: XAU/USD keeps buyers hopeful around $1,930
|- Gold prices extend Tuesday’s US session recovery moves from $1,914.40.
- Risk-tone remains positive but the US dollar weakness favors the bulls.
- Asian session calendar stays mostly light but trade/virus concerns become the key to watch.
Gold prices ease from $1,932.48 to $1,929.50 amid the initial Asian session trading on Wednesday. Even so, the yellow metal keeps the latest pullback from $1,914.40 that struggles to question the three-day losing streak. While buyers seem to await fresh clues, sellers are less interested in considering the US dollar’s downbeat performance the previous day. It should also be noted that the run-up in equities exerts additional downside pressure on the metal’s safe-haven demand.
Traders turn cautious…
Despite flashing losses during the last three days, gold traders lack momentum push. The reason could be traced from the global market players’ wait for the Jackson Hole Symposium.
Be it the highest losses of the US dollar index (DXY) in over a week or the record closing by the S&P 500 and Nasdaq, nothing could please the bullion traders as it marked a meager loss the previous day.
News suggesting the challenges to the US push for the coronavirus (COVID-19) vaccine/treatment initially challenged the market’s early-week risk-on mood during the initial Tuesday. However, update from the US-China trade dialogue pleased traders afterward as the world’s two largest economies said that the phase one deal talks are “constructive”. A mixed data from the US and further recovery in the virus figures were additional catalysts that played their role so far.
Amid all these concerns, S&P 500 Futures catch a breather around 3,445 after flashing the record high of 3,448.75 the previous day.
While trade/virus updates are likely to offer intermediate moves to the yellow metal, not to forget today’s US Durable Goods Orders, major attention will be paid to the global central bankers’ comments from the Jackson Hole Symposium, up for Thursday and Friday. The reason for extra cautiousness is the major central banks’ fight against the COVID-19.
Technical analysis
Tuesday’s Doji candlestick formation needs validation from a clear break of 21-day EMA, at $1,941.80 now, to convince buyers. Until then, sellers can keep a 50-day EMA level of $1,887.52 on their radars.
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