Gold Price Analysis: XAU/USD bulls eye $1,900 as US stimulus hopes battle Brexit, virus woes

  • Gold trims week’s start losses amid cautious markets.
  • US policymakers eye stop-gap funding for immediate relief while staying ready with stimulus plan.
  • Brexit deal less likely in 2020 amid outbreak of new covid variant in the UK.
  • S&P 500 Futures snap four-day winning streak, eyes on macro for fresh impulse.

Gold prices seesaw around $1,885, following the $5 move at the week’s start, during the early Asian session on Monday. Although Brexit woes and the fears of the new coronavirus (COVID-19) variant weighed down the bullion at the start of Asian trading, hopes of the US covid stimulus favor the commodity bulls. However, traders have recently turned cautious ahead of the official verdict on Brexit and US fiscal stimulus, which in turn keeps the precious metal in a tight range.

Risks remain heavy…

Although US Congress members are likely to have backed short-term stop-gap funding, while also agreeing on the much-awaited aid package of around $900 billion, House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin are yet to make an official announcement. On the other hand, House Majority Leader Mitch McConnell tweets, “As the American people continue battling the coronavirus this holiday season, they will not be on their own. Congress has just reached an agreement. We will pass another rescue package ASAP. More help is on the way.”

Talking about Brexit, the EU Chairman of the Foreign Affairs Committee David Callister mentioned in a tweet that the European Parliament will not be in a position to grant consent to an agreement this year. The European Union (EU) and the UK have been at loggerheads over fisheries and level playing field as per the latest market chatters.

Other than the US aid package and Brexit, the recent outbreak of covid variant in the UK is also the key driver. London and Southeast England are under the Tier-4 lockdown due to the stated virus while Netherlands and Australia also had one case each. To tame the pandemic from spreading, European countries including France and Italy join Turkey to suspend UK travels.

Against this backdrop, S&P 500 Futures drop 0.36% to 3,703 while Antipodeans and commodities hold lower ground by the time of writing.

Looking forward, the metal traders will keep their eyes on the macro for fresh impulse. Although a stimulus deal announcement can help the gold buyers, fears of no-deal Brexit and virus outbreak probe the commodity’s upside.

Technical analysis

Although a clear upside break of 50-day SMA, at $1,870 now, keeps gold buyers hopeful, the mid-November peak surrounding the $1,900 threshold and 100-day SMA near $1,903 guards immediate upside of the yellow metal. Meanwhile, an ascending trend line from November 30, at $1,852, adds to the downside support.

Additional important levels

Today last price 1883.72
Today Daily Change 2.42
Today Daily Change % 0.13%
Today daily open 1881.3
Daily SMA20 1835.31
Daily SMA50 1871.17
Daily SMA100 1905.34
Daily SMA200 1814.82
Previous Daily High 1889.78
Previous Daily Low 1877.47
Previous Weekly High 1896.3
Previous Weekly Low 1819.08
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1882.17
Daily Fibonacci 61.8% 1885.08
Daily Pivot Point S1 1875.92
Daily Pivot Point S2 1870.54
Daily Pivot Point S3 1863.61
Daily Pivot Point R1 1888.23
Daily Pivot Point R2 1895.16
Daily Pivot Point R3 1900.54



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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!