• Gold extended its sideways consolidative price action through the early European session.
  • A goodish pickup in the USD demand capped gains for the dollar-denominated commodity.
  • Concerns about the continuous rise in COVID-19 cases might help limit any meaningful slide.

Gold was seen oscillating in a range below the $1785 level and remains well within the striking distance of multi-year tops set last Wednesday.

A combination of diverging forces failed to assist the commodity to build on its gains recorded over the past two trading sessions, rather led to a subdued/range-bound trading action on Tuesday. Growing worries about the ever-increasing COVID-19 cases globally extended some support to the safe-haven precious metal during the Asian session.

Investors remain concerned that the second wave of coronavirus infections could trigger renewed lockdown measures to contain the spread and that the current economic recovery may prove to be short-lived. The market worries led to a modest pullback in the equity markets and drove investors back towards traditional safe-haven assets.

Meanwhile, the supporting factor, to a larger extent, was negated by a goodish pickup in the US dollar demand, which tends to undermine the dollar-denominated commodity. Monday's upbeat US ISM Non-Manufacturing PMI print indicated that the economy has already started to recover and helped ease the recent bearish pressure surrounding the greenback.

It will now be interesting to see if the yellow metal is able to attract any follow-through buying or continues with its consolidative moves. In the absence of any major market-moving economic releases, the USD price dynamics and developments surrounding the coronavirus saga will play a key role in influencing the commodity's movement on Tuesday.

Technical levels to watch

XAU/USD

Overview
Today last price 1782.08
Today Daily Change -2.38
Today Daily Change % -0.13
Today daily open 1784.46
 
Trends
Daily SMA20 1751.8
Daily SMA50 1729.9
Daily SMA100 1680.18
Daily SMA200 1594.69
 
Levels
Previous Daily High 1787.11
Previous Daily Low 1770.16
Previous Weekly High 1789.28
Previous Weekly Low 1757.7
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1780.64
Daily Fibonacci 61.8% 1776.63
Daily Pivot Point S1 1774.04
Daily Pivot Point S2 1763.63
Daily Pivot Point S3 1757.09
Daily Pivot Point R1 1790.99
Daily Pivot Point R2 1797.53
Daily Pivot Point R3 1807.94

 

 

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