Gold Price Analysis: XAU/USD bulls await fresh clues to probe monthly top below $1,950


Share:
  • Gold buyers catch a breather above $1,920 after posting the biggest gains in a fortnight.
  • COVID-19 data from US states, Victoria propel fears of wider wave 2.0.
  • Trump blames Democrats for the delay in stimulus despite recent hopes, EU and the UK resume Brexit talks.
  • US Initial Jobless Claims, aid package updates will be the key.

Gold drops to $1,924, after rising for three consecutive days, during the early Asian session on Thursday. The latest challenges to risk-on mood, initially backed by the hopes of the US coronavirus (COVID-19) relief package and a soft Brexit, seem to have taken clues from the virus updates to probe the yellow metal buyers.

Bears aren’t off the table…

Although optimism concerning the US virus aid package, as conveyed by the American Congress members, favored the yellow metal to probe the monthly high the previous day, US President Donald Trump keeps blaming Democrats for the delay in the much-needed relief. In doing so, the Republican names House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer as the key hurdles in doing what’s right for the American workers and the USA as a whole. It should be noted that the US Senate Majority Leader Mitch McConnell threw cold water on the face of President Trump’s push for the government's help ahead of the elections on Tuesday.

On the other hand, virus woes are getting a grip in the US and Australia, after returning stronger in Europe and the UK. The latest update suggests that 12 out of 50 US states have reported record daily increases in deaths so far in October, per Reuters’ tally. The report also mentions that 26 states have reported a record daily jump in new cases during the mentioned time. Elsewhere, new cases from Victoria challenged Melbourne’s 14-day average with five new cases of the pandemic, coupled with zero cases of deaths due to the virus, per the data from ABC News.

Other than the stimulus and pandemic news, traders’ doubts over any positive results from the Brexit talks, despite agreeing to rejoin the table, could also hamper the market’s earlier optimism.

While portraying the mood, Wall Street closed in a light shade of the red whereas S&P 500 Futures struggle for a clear direction near 3,430.

Moving on, the Asian calendar doesn’t contain any major data/events for gold players to watch, which in turn highlights risk catalysts, mentioned above, as the main drivers. During the US session, weekly prints of the Intiial Jobless Claims and Fedspeak may entertain the momentum traders.

Technical analysis

Gold buyers look for sustained trading beyond a two-month-old falling trend line, currently around $1,922, to attack the monthly top surrounding $1,935. Though, bulls’ dominance past-$1,935 will aim for the mid-September peak close to $1,973.64. Meanwhile, a confluence of 21-day SMA and an upward sloping trend line from September 28, near $1,899, offers strong support to watch.

Additional important levels

Overview
Today last price 1924.58
Today Daily Change 18.36
Today Daily Change % 0.96%
Today daily open 1906.22
 
Trends
Daily SMA20 1895
Daily SMA50 1924.78
Daily SMA100 1875.07
Daily SMA200 1756.53
 
Levels
Previous Daily High 1914.18
Previous Daily Low 1894.7
Previous Weekly High 1933.3
Previous Weekly Low 1882.46
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1906.74
Daily Fibonacci 61.8% 1902.14
Daily Pivot Point S1 1895.89
Daily Pivot Point S2 1885.55
Daily Pivot Point S3 1876.41
Daily Pivot Point R1 1915.37
Daily Pivot Point R2 1924.51
Daily Pivot Point R3 1934.85

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD holds steady below 1.0800 ahead of EU data

EUR/USD holds steady below 1.0800 ahead of EU data

EUR/USD is holding steady just shy of the 1.0800 mark in the early European morning. The US Dollar is consolidating the upside amid a cautious market tone, as investors assess Friday's US NFP blowout and hawkish Fed expectations. Eurozone data coming up next. 

EUR/USD News

GBP/USD defends gains near 1.2050 amid renewed Brexit optimism

GBP/USD defends gains near 1.2050 amid renewed Brexit optimism

GBP/USD is defending minor bids near 1.2050 in the European session. The Cable finds support from the renewed Brexit optimism, despite a broadly firmer US Dollar. EU said that they have reached a breakthrough on trade reported in NI protocol talks. 

GBP/USD News

Gold bulls need validation from $1,905

Gold bulls need validation from $1,905

Gold price rebounds from monthly low, grinding higher around intraday tops surrounding $1,878 heading into Monday’s European session. In doing so, the yellow metal snaps a two-day downtrend amid the sluggish US Dollar.

Gold News

Is this the beginning of the end for crypto bulls?

Is this the beginning of the end for crypto bulls?

Bitcoin is the glue that is holding this 2023 bull run intact for Ethereum, Ripple and other altcoins. But chinks in BTC bulls’ armor are beginning to show, therefore, investors need to be cautious of a sudden reversal. 

Read more

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

The Week Ahead - RBA rate meeting, UK Q4 GDP and earnings

Back in November the RBA hiked rates by a less than expected 25bps, amidst concern about the effects recent rate hikes were having on the Australian economy and ergo the housing market. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures