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


  • Gold fell on Monday as the dollar advanced. 
  • Renewed coronavirus concerns boosted the haven demand for the greenback.

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

XAU/USD

Overview
Today last price 1899.94
Today Daily Change -0.96
Today Daily Change % -0.05
Today daily open 1900.9
 
Trends
Daily SMA20 1901.83
Daily SMA50 1923.08
Daily SMA100 1881.38
Daily SMA200 1761.89
 
Levels
Previous Daily High 1914.3
Previous Daily Low 1894.48
Previous Weekly High 1931.54
Previous Weekly Low 1894.48
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1902.05
Daily Fibonacci 61.8% 1906.73
Daily Pivot Point S1 1892.15
Daily Pivot Point S2 1883.41
Daily Pivot Point S3 1872.33
Daily Pivot Point R1 1911.97
Daily Pivot Point R2 1923.05
Daily Pivot Point R3 1931.79

 


 

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