Gold Price Analysis: XAU/USD bulls catch a breather above $1,850 amid virus woes


  • Gold fades recovery moves from $1,858.43, stays near two-week top.
  • Looming border close in Britain, rumors over Japan’s canceled Olympic and EU’s tough lockdowns probe the bulls.
  • Biden administration turned down hopes of vaccine availabilities in the Pharmacies by February.
  • Stimulus hopes favor the bulls but monthly PMIs will decorate the calendar.

Following its failure to please the bulls, Gold eases to $1,869.70 during the initial Asian session on Friday. The yellow metal refreshed two-week top the previous day on stimulus hopes but the coronavirus (COVID-19) and downbeat data from the US, not to forget upbeat ECB, probes the bulls afterward.

Not only downbeat comments from US President Joe Biden, concerning the virus, but the recently appointed US Centers for Disease Control and Prevention (CDC) Director’s doubts over the availability of vaccines in the pharmacies versus promised also signal the virus woes.

On the other hand, European Leaders are jostling for further strict activity measures as The Guardian said, “Angela Merkel has warned of the danger of a third wave from the new variants of coronavirus, as EU leaders drew up a blueprint that could lead to a ban on travelers from the UK and restrictions on movement across the bloc’s internal borders.”

Further, The Telegraph cites British policymakers push to UK PM Boris Johnson to close the national boundaries whereas The Times said, “Japan govt has privately concluded Tokyo Olympics will have to be canceled because of coronavirus.”

Elsewhere, the incoming US Treasury Secretary Janet Yellen showed readiness to keep the pressure on China. Further, comments from the policymakers at the European Central Bank (ECB) and the Bank of Japan (BOJ) have been cautiously optimistic off-late.

Against this backdrop, S&P 500 Futures drop 0.08% after refreshing the record top the previous day. Though, the US 10-year Treasury yields keep the upside momentum to 1.11% by press time.

Looking forward, initial readings of January’s activity numbers from the US, the UK and Europe will be important to watch. Though, virus updates, Sino-American tension and Biden’s any fresh moves directly affecting the risk should be considered the main drivers.

Technical analysis

Thursday’s candlestick on the daily chart suggests range-bound trading to prevail between the 50-day and 21-day SMAs, respectively around $1,859.50 and $1,876.50. 100-day SMA near $1,883 adds to the upside barriers.

Additional important levels

Overview
Today last price 1869.7
Today Daily Change 0.58
Today Daily Change % 0.03%
Today daily open 1869.12
 
Trends
Daily SMA20 1876.86
Daily SMA50 1860
Daily SMA100 1883.53
Daily SMA200 1846.86
 
Levels
Previous Daily High 1875.2
Previous Daily Low 1858.43
Previous Weekly High 1863.83
Previous Weekly Low 1816.96
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1864.84
Daily Fibonacci 61.8% 1868.79
Daily Pivot Point S1 1859.97
Daily Pivot Point S2 1850.81
Daily Pivot Point S3 1843.2
Daily Pivot Point R1 1876.74
Daily Pivot Point R2 1884.35
Daily Pivot Point R3 1893.51

 

 

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