Gold Price Analysis: XAU/USD steadily climbs back to $1910 area amid softer USD
|- A softer tone surrounding the USD assisted gold to regain some positive traction on Tuesday.
- Worries about the ever-increasing COVID-19 cases further benefitted the safe-haven metal.
- The lack of any strong follow-through warrants some caution before placing fresh bullish bets.
Gold edged higher during the Asian session on Tuesday and was last seen hovering near the top end of its daily trading range, just below the $1910 region.
Having shown some resilience below the $1900 level, the precious metal managed to regain some positive traction and moved away from seven-day lows set in the previous session. The uncertain US political environment kept the US dollar bulls on the defensive, which was seen as a key factor lending some support to dollar-denominated commodities – including gold.
Adding to this, investors remain concerned over the potential economic impact from renewed lockdown measures to curb the ever-rising number of COVID-19 cases. Renewed coronavirus jitters, along with the lack of progress in the next round of the US stimulus measures, dented investors' appetite for riskier assets and provided an additional boost to the safe-haven metal.
Given the overnight bounce from the vicinity of 100-day SMA, the uptick could further be attributed to some technical buying, albeit lacked any strong bullish conviction. This makes it prudent to wait for some strong follow-through buying before confirming that the XAU/USD might have formed a strong base and positioning for any further near-term appreciating move.
Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders. The data might influence the USD price dynamics and provide some impetus. Apart from this, the broader market risk sentiment will also be looked upon to grab some meaningful trading opportunities around the XAU/USD.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.