- Gold prices trade mixed near the September lows, probed on Monday.
- Risk catalysts remain mostly sluggish as virus woes combat vaccine hopes.
- Expectations of further monetary easing, absence of a push towards negative rates and rising US treasury yields keep buyers hopeful.
- Economic calendar welcomes the return of the US data, challenges to trading sentiment will be the key.
Gold prices extend corrective bounce off $1,856 while taking rounds to $1,865 amid the initial Asian session on Thursday. Following a heavy drop on Monday, to September month low, the yellow metal consolidated gains to $1,890, before marking the latest move around $1,856.34. The reason for the mixed trading could be traced from a lack of clear market direction amid mixed signals concerning the coronavirus (COVID-19) and the US election results, not to forget about the global monetary policy moves.
Virus, vaccine regains market attention…
With US President-elect Joe Biden notably clearing hurdles to the White House, gold traders pay a little heed to the American politics where Donald Trump keeps trying to defy the results. An additional incentive to ignore those headlines could come from the virus wave 2.0. Almost all US states getting an uncontrolled status report of the COVID-19, backed by record hospitalizations and daily cases rising past-100,000 in the last few days.
While the pandemic is reaffirming its grip over the world’s largest economy, vaccine makers are also trying their best to tame the deadly virus. Following upbeat news from Pfizer-BioNTech, Moderna is also up for releasing data for its huge trials and is mostly talked to have the same effectiveness as Pfizer-led cure.
To combat the pandemic-led woes, global central bankers stay ready to pump the markets beyond limits, while also refraining from the negative rates. The same push global traders to expect recoveries and keep a tab on the safe-havens. It should also be noted that the absence of the US trader offered additional limits on the yellow metal’s recent trading.
Even so, the US 10-year Treasury yields an inch closer to the 1.0% limit while Wall Street trades mixed.
Moving on, the latest data concerning the US inflation and jobless claims will welcome the American traders by offering fresh moves of the commodity. Joining the same will be the risk catalysts, as discussed above. As a result, the precious metal is expected to witness an improvement in trading conditions going forward.
With sustained trading below 100-day EMA, currently around $1,875, gold bears remain hopeful to break September’s bottom near $1,848, which in turn will drag the quote southwards to the early July top of $1,818 before highlighting the 200-day EMA level of $1,794.
Additional important levels
|Today last price||1865.5|
|Today Daily Change||-7.40|
|Today Daily Change %||-0.40%|
|Today daily open||1872.9|
|Previous Daily High||1890.46|
|Previous Daily Low||1856.4|
|Previous Weekly High||1960.4|
|Previous Weekly Low||1873.52|
|Previous Monthly High||1933.3|
|Previous Monthly Low||1860|
|Daily Fibonacci 38.2%||1877.45|
|Daily Fibonacci 61.8%||1869.41|
|Daily Pivot Point S1||1856.05|
|Daily Pivot Point S2||1839.19|
|Daily Pivot Point S3||1821.99|
|Daily Pivot Point R1||1890.11|
|Daily Pivot Point R2||1907.31|
|Daily Pivot Point R3||1924.17|
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.