Gold Price Analysis: Bears testing $1500 support, down over 1%

Risk-off returns, gold sold in need for cash amid coronavirus chaos.
US dollar stalls its broad corrective slide, funding stress back?
Broad market sell-off amid coronavirus to keep the upside in check.

Dhwani Mehta FXStreet

Gold (futures on Comex) extends the Asian descent into Europe, as the bears test the 1500 demand area amid a fresh risk-aversion wave hitting the markets.

The yellow-metal stalled its overnight bounce just shy of the 1550 mark and resumed its recent bearish momentum, as the sentiment turned sour amid a rising number of coronavirus cases globally.

Meanwhile escalating concerns over the economic impact of the pandemic also dampened the investors' sentiment, as they liquidated their positions in gold once again in exchange for cash so as to cover the losses incurred from the global equities sell-off.

Further, the US dollar stalled its corrective slide across its main competitors, which also collaborates with the latest leg down in gold. The US dollar index hit a fresh one-month high at 99.82 on Tuesday, as the demand for the most liquid currency shot up in times of the coronavirus chaos. The spot now trades at 99.33, having bounced-off a daily low of 99.16.

Despite the global economic stimulus measures deployed, the gold bulls failed to find any reprieve, as liquidity crunch continues to underpin the greenback and keep the yellow metal pressured. Focus remains on the USD dynamics and risk trends amid incoming virus headlines for fresh directives.

Gold technical levels to watch

XAU/USD

Overview
Today last price	1508.70
Today Daily Change	-20.14
Today Daily Change %	-1.32
Today daily open	1528.88

Trends
Daily SMA20	1616.93
Daily SMA50	1587.13
Daily SMA100	1535.95
Daily SMA200	1500.99

Levels
Previous Daily High	1554.06
Previous Daily Low	1465.8
Previous Weekly High	1703.4
Previous Weekly Low	1504.72
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1520.34
Daily Fibonacci 61.8%	1499.52
Daily Pivot Point S1	1478.43
Daily Pivot Point S2	1427.99
Daily Pivot Point S3	1390.17
Daily Pivot Point R1	1566.69
Daily Pivot Point R2	1604.51
Daily Pivot Point R3	1654.95

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD clings to gains above 1.3600 on persistent USD weakness

GBP/USD stays in positive territory well above 1.3600 after retreating slightly from the six-month peak it set above 1.3650 earlier in the day. The US Dollar (USD) stays on the back foot and allows the pair to hold its ground after suffering heavy losses on the US Treasury Department's decision to ramp up long-term bond purchases on Wednesday.

EUR/USD retreats from three-month high, trades below 1.1700

EUR/USD loses its bullish momentum and trades flat on the day below 1.1700 after setting a three-month high earlier in the day. Nevertheless, the pair's downside remains limited as the US Dollar (USD) struggles to gather strength following the US Treasury Department's decision to boost long-term bond purchases.

Gold pares gains as US Treasury yields, Dollar recover

Gold (XAU/USD) extends its intraday decline at the start of American trading hours on Thursday as US Treasury yields and the US Dollar stabilise following the previous day’s sharp pullback.

Crypto Today: Bitcoin, Ethereum, XRP extend gains as ETFs inflows and improved sentiment boost outlook

Cryptocurrency prices are extending gains on Thursday, led by Bitcoin’s (BTC) climb above $70,000. Ethereum (ETH) remains bullish, trading above $2,200, while Ripple (XRP) has recovered above $1.15 as bulls tighten their grip.

US Treasury doubles long-dated bond buybacks: Why are yields rising again?

US Treasury yields stabilize on Thursday after Wednesday’s sharp decline, with the 10-year yield edging back up to 4.672%. The US Treasury doubled the size of some long-dated debt buybacks, a surprise decision that helped ease the recent surge in yields.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.