Gold Price Analysis: XAU/USD bounces-off weekly lows near $1855 amid sell-off in Treasury yields

Gold off lows, remains heavy as US dollar gains on risk-aversion.
Rising covid cases and new shutdowns globally weigh on market mood.
Vaccine optimism ignored as focus remains on covid updates.

Dhwani Mehta FXStreet

Gold’s (XAU/USD) attempts a bounce from weekly lows near $1855, as the bulls recapture the $1860 mark despite the risk-aversion fuelled by the relentless rise in the coronavirus cases on both sides of the Atlantic.

Markets appear to take profits on their short positions after the price once again held onto the critical $1850 support. Further, the yieldless gold derives support from the sell-off in the US Treasury yields amid a lack of demand for riskier assets.

However, gold’s recovery attempts seem shallow, as the haven demand for the US dollar remains in vogue amid the reignition of the global economic concerns. Spiking virus cases and fresh lockdowns announced in the US, Australia and Europe threaten the prospects of an economic recovery, which weigh on the vaccine enthusiasm.

After Pfizer and Moderna, AstraZeneca announced promising results from its covid vaccine trial, adding that the final results from the phase 3 trial is expected in weeks.

Attention now turns towards the US Philly Fed Manufacturing and weekly Jobless Claims data for fresh hints on the economy. The latest covid stats from the US will be also closely eyed.

Gold Technical levels

Immediate resistance awaits at the $1874 daily high, above which the bulls will gear up for a test of the critical $1891 barrier. To the downside, October low at $1860 could be retested, below which is the next cushion is aligned at $1850/49, the September month low and November 9 low.

Gold: Additional levels

XAU/USD

Overview
Today last price	1864.20
Today Daily Change	-7.15
Today Daily Change %	-0.38
Today daily open	1870.32

Trends
Daily SMA20	1892.63
Daily SMA50	1902.79
Daily SMA100	1907.86
Daily SMA200	1790.98

Levels
Previous Daily High	1884.9
Previous Daily Low	1863.86
Previous Weekly High	1965.58
Previous Weekly Low	1850.56
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1871.9
Daily Fibonacci 61.8%	1876.86
Daily Pivot Point S1	1861.15
Daily Pivot Point S2	1851.99
Daily Pivot Point S3	1840.11
Daily Pivot Point R1	1882.19
Daily Pivot Point R2	1894.07
Daily Pivot Point R3	1903.23

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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