Gold holds steady above $1770 level, bullish bias remains


  • Gold witnessed some intraday profit-taking amid a modest bounce in the equity markets.
  • Concerns about rising coronavirus cases, fresh USD selling helped limit any deeper losses.
  • The set-up remains tilted firmly in favour of bulls and a possible move towards $1800 mark.

Gold extended its sideways consolidative price moves through the mid-European session and remained confined in a narrow trading band, around the $1770 region.

The commodity failed to capitalize on the previous day's strong intraday up move of around $25 dollar and witnessed a modest intraday pullback following an early uptick to the $1775 region earlier during the Asian hours on Monday.

A modest rebound in the global equity markets undermined demand for traditional safe-haven assets. Adding to this, a goodish intraday uptick in the US Treasury bond yields exerted some pressure on the non-yielding yellow metal.

However, fading hopes of a sharp V-shaped global economic recovery, coupled with the emergence of some fresh US dollar selling pressure helped limit any deeper losses for the dollar-denominated commodity, rather attracted some dip-buying.

This comes amid growing worries that a surge in new coronavirus cases might trigger renewed lockdown measures. This, in turn, should assist the metal to prolong its recent bullish trajectory and aim to reclaim the $1800 round-figure mark.

Monday's US economic docket features the only release of Pending Home Sales data. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in producing some meaningful trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1773.16
Today Daily Change 1.82
Today Daily Change % 0.10
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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