Gold Price Analysis: XAU/USD attempts a tepid bounce above $1860, not out of the woods yet

  • Gold off lows, but on track for the fifth straight daily decline.
  • Likely end to Fed’s virus response program weighs on the risk tone.
  • All eyes on stimulus chatter and US covid statistics.

The recovery in gold (XAU/USD) from weekly lows of $1852.80 has regained traction in the Asian trades this Friday, as the sentiment on the global markets remains sour amid stimulus concerns and growing covid fears.

The ultimate safe-haven, gold, is benefiting from a risk-off environment induced by US Treasury Secretary Steven Mnuchin’s abrupt call to end most of the covid crisis-response programs the Fed deemed vital to keeping the economy stable.

The US dollar index nurses overnight losses amid rising coronavirus restrictions and concerns over the economic recovery amid a lack of fiscal and monetary stimulus.

The signs of life in gold can be also attributed to the sell-off in the Treasury yields across the curve, with the benchmark 10-year yields down nearly 4% to trade around 0.820%.

The yellow metal extended its previous declines on Thursday and hit fresh weekly lows just above the critical $1850 support after the sentiment improved on hopes of the revival in the US fiscal stimulus talks and promising vaccine results.

Next of relevance for the precious metal remains the chatter around fiscal stimulus talks and covid stats for fresh trading impetus. In the meantime, gold will remain at the mercy of the risk trends and US dollar dynamics.

Gold Technical levels

Immediate resistance awaits at the $1874 Thursday high, above which the bulls will gear up for a test of critical $1890 (21-DMA). To the downside, $1850/49, the September month low and November 9 low, remains at risk. Sellers will then target the $1800 mark.

Gold: Additional levels


Today last price 1865.05
Today Daily Change -1.69
Today Daily Change % -0.09
Today daily open 1866.74
Daily SMA20 1890.76
Daily SMA50 1901.22
Daily SMA100 1908.78
Daily SMA200 1792.47
Previous Daily High 1874.12
Previous Daily Low 1852.8
Previous Weekly High 1965.58
Previous Weekly Low 1850.56
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1860.94
Daily Fibonacci 61.8% 1865.98
Daily Pivot Point S1 1854.99
Daily Pivot Point S2 1843.23
Daily Pivot Point S3 1833.67
Daily Pivot Point R1 1876.31
Daily Pivot Point R2 1885.87
Daily Pivot Point R3 1897.63



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 


GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.


XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info