Gold Price Analysis: XAU/USD hits 11-day low as dollar gains ground

Gold faced selling pressure on Monday as coronavirus concerns weighed over the risk sentiment and strengthened the haven demand for the US dollar. 

The yellow metal dropped to $1,891 per ounce, the lowest level since Oct.15, during the Asian trading hours. The dollar index, which tracks the greenback's value, jumped 0.11% to 92.87, as the futures tied to the S&P 500 fell by over 0.30%. 

The risk-off moves happened as the US registered a record daily surge in the number of coronavirus cases. According to Johns Hopkins University, the new infections rose more than 83,000 on Friday and Saturday, shattering the previous record of 77,300 cases set in July. According to CNBC, White House chief of staff Mark Meadows said Sunday that the US
will not get control of the pandemic amid the surge in new cases. 

Further, Italy and Spain announced partial lockdown and national curfew over the weekend to control the coronavirus' second wave. 

And while anti-risk assets like gold and Japanese yen fell, the US treasury yields rose, pushing yields lower. The US 10-year yield declined by three basis points to 0.815%. 

Looking forward, if the yields continue to decline, the zero-yielding yellow metal could pick up a bid.

From a technical analysis perspective, a break above the Oct. 12 high of $1,933 is needed to confirm an end of a pullback from the record high of $2,075 and resume the broader uptrend. 

On the downside, the 100-day simple moving average (SMA) at $1,882 is the level to beat for the sellers. 

Technical levels