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.

Dhwani Mehta FXStreet

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

XAU/USD

Overview
Today last price	1908
Today Daily Change	-0.80
Today Daily Change %	-0.04
Today daily open	1907.8

Trends
Daily SMA20	1903.35
Daily SMA50	1919.51
Daily SMA100	1885.35
Daily SMA200	1765.35

Levels
Previous Daily High	1911.46
Previous Daily Low	1897.92
Previous Weekly High	1931.54
Previous Weekly Low	1894.48
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1906.29
Daily Fibonacci 61.8%	1903.09
Daily Pivot Point S1	1899.99
Daily Pivot Point S2	1892.19
Daily Pivot Point S3	1886.45
Daily Pivot Point R1	1913.53
Daily Pivot Point R2	1919.27
Daily Pivot Point R3	1927.07

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.

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