Gold Price Analysis: XAU/USD battles $1,780 amid downbeat covid updates, US dollar pullback


  • Gold’s corrective pullback fades around immediate key hurdle.
  • S&P 500 Futures print mild gains despite virus woes in Japan, Canada.
  • Yellen, Fed’s Kashkari troubled traders earlier but off in Tokyo, Beijing limit market moves afterward.
  • US data, risk catalysts will be the key to follow.

Gold buyers attack $1,780 while flashing an intraday high of $1,779.71 during early Wednesday. The bright metal dropped the heaviest in over a month the previous day as risk-off mood put a bid under the US dollar. However, an absence of Japanese and Chinese traders seems to restrict the bullion’s corrective pullback.

Even so, the commodity prices cheer 0.20% intraday gains of S&P 500 Futures while paying a little to the US dollar pullback and the latest coronavirus (COVID-19) updates from Japan and Canada.

Market sentiment restores the previous cautious optimism after US Treasury Secretary Janet Yellen reversed her initial comments backing the rate hike. Also on the positive side could be comments from Federal Reserve Bank of Minneapolis President Neel Kashkari while turns down the need for any action unless inflation surprises.

Alternatively, Japan aims to extend the third state of emergency in Tokyo and surrounding prefectures beyond the May 11 deadline. Additionally, Canada escalates virus-led activity restrictions in Alberta province as pandemic resurgence gains momentum.

Amid these plays, the US dollar index (DXY) prints mild losses and stocks in Asia-Pacific remain sluggish by the press time.

Looking forward, cautious sentiment ahead of the key US ISM Services PMI and ADP Employment Change for April could keep restricting gold’s short-term upside. However, the latest challenges to the risk appetite flash downside risk for the bullion prices.

Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

Technical analysis

Gold prices stay above $1,766-69 support confluence comprising 50-day and 21-day EMA, as well as a three-week-old ascending trend line, which in turn keeps the buyers hopeful. However, a clear break above $1,780 becomes necessary for the bulls to attack the $1,800 threshold.

Additional important levels

Overview
Today last price 1779.6
Today Daily Change 0.60
Today Daily Change % 0.03%
Today daily open 1779
 
Trends
Daily SMA20 1767.38
Daily SMA50 1744.91
Daily SMA100 1798.85
Daily SMA200 1853.98
 
Levels
Previous Daily High 1799.08
Previous Daily Low 1770.9
Previous Weekly High 1790.03
Previous Weekly Low 1756.18
Previous Monthly High 1797.93
Previous Monthly Low 1705.84
Daily Fibonacci 38.2% 1781.66
Daily Fibonacci 61.8% 1788.32
Daily Pivot Point S1 1766.91
Daily Pivot Point S2 1754.81
Daily Pivot Point S3 1738.73
Daily Pivot Point R1 1795.09
Daily Pivot Point R2 1811.17
Daily Pivot Point R3 1823.27

 

 

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