• Gold picks up bids, prints second positive day following Monday’s heavy drop to the late-September low.
  • Asian shares stay positive in early trade, US stock futures keep the mildly grim tone.
  • Virus woes, updates on vaccine research probe earlier hopes.
  • US holiday can restrict market moves, risk catalysts to keep the driver’s seat.

Gold extends the previous day’s recovery moves to $1,878.60, up 0.31% intraday, as markets in Tokyo open for Wednesday’s trading. The yellow metal slumped to the September 28 bottom on Monday before bouncing off $1,850.56. Although the US dollar’s inability to hold the early-week gains help the precious metal buyers, a light calendar in Asia and mixed signals from the key risk areas may continue challenging the commodity traders.

Stimulus hopes keep the buyers hopeful…

With a halt in China’s vaccine trials in Brazil, due to the death of a volunteer, pours cold water on the face of the market optimism, US President-elect Joe Biden’s readiness to pump the world’s largest economy, recently by healthcare measures, support the market’s optimism. Also on the positive side could be the hopes from Europe and China that Biden’s victory will offer a fresh start to their trade relations that have been noisy during Donald Trump’s ruling.

On the contrary, the return of the coronavirus (COVID-19) death toll to the early-pandemic era joins the US-China tussle and Trump’s efforts to keep the White House challenge the risk-on mood.

Amid all these plays, S&P 500 Futures print mild losses, down for the second day, whereas shares in Japan, Australia and New Zealand print gains above 1.0% by press time.

Considering the lack of clear direction following the recent drop, coupled with the holiday in the US, Gold prices are likely to extend recovery moves amid hopes of covid vaccine and further stimulus. Though, any surprises from the US polity will not refrain from taking down the yellow metal.

Technical analysis

Unless declining past-September month’s low near $1,848.80, short-term gold buyers can stay to revisit the October high surrounding $1,933. Though, the $1,900 may offer an intermediate halt during the recovery.

Additional important levels

Overview
Today last price 1878.64
Today Daily Change 5.74
Today Daily Change % 0.31%
Today daily open 1872.9
 
Trends
Daily SMA20 1901.58
Daily SMA50 1909.74
Daily SMA100 1901.39
Daily SMA200 1781.6
 
Levels
Previous Daily High 1890.46
Previous Daily Low 1856.4
Previous Weekly High 1960.4
Previous Weekly Low 1873.52
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1877.45
Daily Fibonacci 61.8% 1869.41
Daily Pivot Point S1 1856.05
Daily Pivot Point S2 1839.19
Daily Pivot Point S3 1821.99
Daily Pivot Point R1 1890.11
Daily Pivot Point R2 1907.31
Daily Pivot Point R3 1924.17

 

 

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 stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures