Gold Price Analysis: XAU/USD bounces-back towards $1910 amid growing coronavirus woes
- Gold attempts bids amid coronavirus woes-led risk-aversion.
- US dollar’s haven demand returns, likely to cap gold’s upside.
- Focus on virus updates and sentiment on global markets.
Gold (XAU/USD) has bounced-off daily lows near $1902, as the bulls fight back control amid a sell-off in the US Treasury yields, triggered by the coronavirus concerns-induced risk-aversion.
The benchmark US 10-year Treasury yields drop further below the key 0.80% level, now trading at 0.768%, down 1.40% on a daily basis. The pessimism surrounding the American fiscal stimulus, election uncertainty and dwindling economic recovery weigh negative on the higher-yielding US rates and benefit the non-yielding gold.
However, the further upside could remain elusive in the spot, as haven demand for the US dollar has returned in the overnight trades, with investors seeking safety in the buck ahead of next week’s US Presidential election.
In the day ahead, the focus will remain on the virus developments globally and its impact on the market sentiment and dollar dynamics, which will likely have a major bearing on the yellow metal.
Gold Technical levels
Immediate resistance awaits at the Oct 27 high of $1911.46, above which the bulls will gear up for a test of the 50-DMA at $1919. To the downside, 21-DMA support at $1903 is the level to beat for the bears. The next cushion is aligned at 100-DMA of $1887.
Gold: Additional levels
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.
