Gold eases below $1770 level, downside seems limited


  • Gold witnessed a modest intraday pullback amid a recovery in the US equity futures.
  • A pickup in the US bond yields further exerted pressure on the non-yielding metal.
  • Weaker USD might extend some support to the dollar-denominated commodity.
  • The set-up still supports prospects for a move towards the ambitious $1800 target.

Gold struggled to capitalize on its early uptick back closer to multi-year tops and was last seen trading near daily lows, just below the $1770 region.

The ever-increasing number of new cases globally served as a warning that the fight against COVID-19 is not over and indicated that the road to recovery will be much slower than expected. Fading hopes of a sharp V-shaped global economic recovery continued weighing on investors' sentiment and benefitted the safe-haven precious metal.

This coupled with the emergence of some fresh US dollar selling further underpinned the dollar-denominated commodity and contributed to the early uptick on the first day of a new trading week. However, a modest rebound in the US equity futures kept a lid on any strong positive move for the metal, at least for the time being.

This coupled with a goodish intraday pickup in the US Treasury bond yields further collaborated towards capping gains, rather exerted some pressure on the non-yielding yellow metal. Despite a modest pullback, the commodity remains well within last week's broader trading range and the striking distance of multi-year tops set last Wednesday.

The range-bounce price action witnessed over the past one-week or so might still be categorized as consolidative. This, in turn, supports prospects for an extension of the near-term appreciating move towards the ambitious $1800/ounce target.

Technical levels to watch

XAU/USD

Overview
Today last price 1769.7
Today Daily Change -1.64
Today Daily Change % -0.09
Today daily open 1771.34
 
Trends
Daily SMA20 1732.05
Daily SMA50 1722.11
Daily SMA100 1667.98
Daily SMA200 1586.78
 
Levels
Previous Daily High 1772.04
Previous Daily Low 1747.59
Previous Weekly High 1779.41
Previous Weekly Low 1742.97
Previous Monthly High 1765.38
Previous Monthly Low 1670.72
Daily Fibonacci 38.2% 1762.7
Daily Fibonacci 61.8% 1756.93
Daily Pivot Point S1 1755.27
Daily Pivot Point S2 1739.21
Daily Pivot Point S3 1730.82
Daily Pivot Point R1 1779.72
Daily Pivot Point R2 1788.11
Daily Pivot Point R3 1804.17

 

 

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