Gold Price Analysis: XAU/USD attempting to bounce up from one-month lows at $1860

Gold recovery attempt from $1,860, capped below 1.875
XAU/USD remains weak with the USD coming up.
US dollar rallies ion COVID-19 fears and US elections uncertainty.

Guillermo Alcala FXStreet

Gold futures are attempting to bounce up after having depreciated more than 2% over the last two days. The yellow metal has picked up after hitting one-month lows at $1,860 although the upside moves are finding sellers at the $1,875 region.

Gold dives with the US dollar rallying

XAU/USD’s bearish reversal from mid-October highs above $1,930 accelerated on Wednesday after breaking below the bottom of the last week's trading rage, at $1,890 area.

Gold prices have suffered amid the broad-based dollar strength. The combination of market concerns about the impact of the second COVID-19 wave, with Europe introducing new lockdowns and the uncertainty regarding the US elections less than a week ahead of the election day, has strengthened the safe-haven dollar against its main peers.

On the macroeconomic front, US data has offered some additional support for the dollar today. According to the advanced estimations, US Gross Domestic Product expanded at a 33.1% annual pace in the third quarter, which is its best performance since records are taken in 1947 and the Weekly Jobless Claims decreased beyond expectations.

In Europe, the European Central Bank hinted to further monetary stimulus in December, which sent the euro tumbling, for the benefit of an already strong USD. All in all, the US Dollar index shows a 0.6% advance on the day after having reached levels beyond 94.00 for the first time in October.

Technical levels to watch

XAU/USD

Overview
Today last price	1870.16
Today Daily Change	-6.91
Today Daily Change %	-0.37
Today daily open	1877.07

Trends
Daily SMA20	1902.91
Daily SMA50	1918.47
Daily SMA100	1886.74
Daily SMA200	1766.94

Levels
Previous Daily High	1910.9
Previous Daily Low	1869.52
Previous Weekly High	1931.54
Previous Weekly Low	1894.48
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1885.33
Daily Fibonacci 61.8%	1895.09
Daily Pivot Point S1	1860.76
Daily Pivot Point S2	1844.45
Daily Pivot Point S3	1819.38
Daily Pivot Point R1	1902.14
Daily Pivot Point R2	1927.21
Daily Pivot Point R3	1943.52

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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