Gold Price Analysis: XAU/USD buyers eye $1,900 amid risk-off mood


  • Gold pares early-week losses despite latest pullback from $1,883.93.
  • Covid recalls activity restrictions in US states, Fed Chair Powell warns about vaccine hopes.
  • Trade, political tensions also join the line to weigh the risks.
  • Aussie PM’s likely hint for vaccine, reopening can entertain Asian traders amid a light calendar.

Gold extends the previous day’s corrective recovery while picking up the bids near $1,877 during the early Friday’s Asian session. In doing so, the yellow metal consolidates the biggest losses in three months, marked on Monday, amid fresh risks emanating from the coronavirus (COVID-19), trade and political frontiers.

Vaccine hopes aren’t enough to restore economics…

Although Pfizer, Moderna and Chinese pharmaceuticals are trying their best to find the cure to the deadly virus, Federal Reserve Chairman Jerome Powell’s hint to not be too optimistic about the cure’s economic impact cooled down the earlier positive market sentiment. This comes at a time when the US and Europe record all-time high cases, which in turn pushes Chicago to join New Zealand in announcing the local lockdowns.

Traders have also heard about China after multiple days of silence relating to the term. The reason could be the US warning to sanction Beijing over the Hong Kong crackdown while also showing readiness to clamp down the American investments in Chinese companies. Further, the dragon nation’s ban on Victorian timber logs becomes an additional reason for the Asian major’s media highlight.

Against this backdrop, US equities trim the latest gains while bond yields slump below 0.90% with the heaviest declines in a week.

Moving on, gold traders await fresh signals over the virus spread and/or vaccine for near-term direction. As a result, the scheduled meeting of the Australian policymakers, which ABC News cites carrying the vaccine news and reopening announcements, becomes the key.

Technical analysis

Gold regains its stand above 100-day EMA, currently around $1,875, after declining to the lowest since September 28 on Monday. The pullback currently eyes a 50-day EMA level near $1,900 while bears remain cautious unless witnessing a downside break of September low around $1,848.

Additional important levels

Overview
Today last price 1877.12
Today Daily Change 13.26
Today Daily Change % 0.71%
Today daily open 1863.86
 
Trends
Daily SMA20 1899.68
Daily SMA50 1908.18
Daily SMA100 1902.42
Daily SMA200 1783.14
 
Levels
Previous Daily High 1884.51
Previous Daily Low 1856.34
Previous Weekly High 1960.4
Previous Weekly Low 1873.52
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1867.1
Daily Fibonacci 61.8% 1873.75
Daily Pivot Point S1 1851.96
Daily Pivot Point S2 1840.07
Daily Pivot Point S3 1823.79
Daily Pivot Point R1 1880.13
Daily Pivot Point R2 1896.41
Daily Pivot Point R3 1908.3

 

 

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