Gold eases from multi-day tops, still well bid above $1900 mark


  • Gold regained positive traction on Monday amid some heavy selling around the USD.
  • The risk-on mood, surging US bond yields kept a lid on any strong positive momentum.

Gold spiked to multi-day tops, around the $1918 region during the early North American session, albeit quickly retreated around $10 thereafter.

The precious metal managed to regain some positive traction on the first day of a new trading week and built on last week's rebound from the $1882 region. The uptick marked the third day of a positive move in the previous four and was exclusively sponsored by the emergence of some fresh selling around the US dollar, which tends to benefit the dollar-denominated commodity.

However, the upbeat market mood – as depicted by a positive opening in the US equity markets – undermined demand for traditional safe-haven assets and kept a lid on any strong gains for the XAU/USD. The global risk sentiment was supported by reviving hopes for additional US fiscal stimulus and expectations of a COVID-19 vaccine by the end of this year.

The risk-on mood was reinforced by a strong intraday upsurge in the US Treasury bond yields, which further collaborated towards capping gains for the non-yielding yellow metal. Nevertheless, the XAU/USD has still managed to hold with modest daily gains and was last seen trading just below the $1910 region.

In the absence of any major market-moving economic releases from the US, the broader market risk sentiment will influence the safe-haven demand for the XAU/USD. This, along with the USD price dynamics might further assist traders to grab some meaningful opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1911.76
Today Daily Change 11.06
Today Daily Change % 0.58
Today daily open 1900.7
 
Trends
Daily SMA20 1895.11
Daily SMA50 1927.33
Daily SMA100 1871.63
Daily SMA200 1753.02
 
Levels
Previous Daily High 1914.04
Previous Daily Low 1897.86
Previous Weekly High 1933.3
Previous Weekly Low 1882.46
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1904.04
Daily Fibonacci 61.8% 1907.86
Daily Pivot Point S1 1894.36
Daily Pivot Point S2 1888.02
Daily Pivot Point S3 1878.18
Daily Pivot Point R1 1910.54
Daily Pivot Point R2 1920.38
Daily Pivot Point R3 1926.72

 

 

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