Gold Price Analysis: XAU/USD bulls await a move beyond 100-day EMA near $1,790 level


  • Gold gained traction for the second consecutive session on Wednesday.
  • Renewed COVID-19 jitters provided a modest lift to the safe-haven metal.
  • An uptick in the US bond yields underpinned the USD and capped gains.

Gold edged higher through the first half of the trading action on Wednesday, albeit lacked any strong follow-through buying. The commodity was last seen hovering just above the $1,780 level, up around 0.25% for the day.

The precious metal gained traction for the second consecutive session on Wednesday and moved back closer to multi-week tops touched earlier this week. Renewed fears about another dangerous wave of coronavirus infections in some countries turned out to be a key factor that provided a modest lift to the safe-haven XAU/USD.

This marked the fourth day of a positive move in the previous five, though a combination of factors kept a lid on any further gains. Bulls once again failed near the 100-day EMA barrier, around the $1,790 region amid a goodish pickup in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.

Meanwhile, an uptick in the US bond yields assisted the US dollar to recover further from the seven-week lows touched in the previous day. This was seen as another factor that capped gains for the dollar-denominated commodity. That said, expectations that the Fed will keep rates low for a longer period should help limit the downside.

The fundamental backdrop favours bullish traders and supports prospects for additional gains. Even from a technical perspective, last week's move beyond the $1,760-65 region validated a bullish double-bottom pattern. However, it will be prudent to wait for a sustained break through the $1,790 hurdle before placing fresh bullish bets.

In the absence of any major market-moving economic releases from the US, traders might continue to take cues from the broader market risk sentiment. Apart from this, the US bond yields will influence the USD price dynamics and further contribute to produce some short-term trading opportunities around the XAU/USD.

Technical levels to watch

XAU/USD

Overview
Today last price 1782.88
Today Daily Change 4.06
Today Daily Change % 0.23
Today daily open 1778.82
 
Trends
Daily SMA20 1738.37
Daily SMA50 1750.35
Daily SMA100 1804.76
Daily SMA200 1857.39
 
Levels
Previous Daily High 1780.5
Previous Daily Low 1763.7
Previous Weekly High 1783.85
Previous Weekly Low 1723.8
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1774.08
Daily Fibonacci 61.8% 1770.12
Daily Pivot Point S1 1768.18
Daily Pivot Point S2 1757.54
Daily Pivot Point S3 1751.38
Daily Pivot Point R1 1784.98
Daily Pivot Point R2 1791.14
Daily Pivot Point R3 1801.78

 

 

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