Gold Price Analysis: XAU/USD climbs to near two-week tops, closer to $1850 level


  • Gold jumped to fresh two-week tops in reaction to disappointing headline NFP print.
  • A modest bounce in the US bond yields kept a lid on any further gains for the metal.
  • The upbeat market mood might further cap the upside for the safe-haven commodity.

Gold reversed an early North American session fall to the $1833 region and climbed to near two-week tops, around the $1848 region in recent trading.

The precious metal gained some traction and broke out of its daily consolidative trading range in reaction to a rather unimpressive US monthly jobs report. The headline NFP showed that the US economy added 245K new jobs in November as against 469K anticipated. Adding to this, the previous month's reading was revised down to 610K from 638K reported previously.

The disappointment, to a larger extent, was offset by additional details, which revealed that the unemployment rate fell more than expected to 6.7% from 6.9% previous. This, along with a modest rebound in the US Treasury bond yields, provided a much-needed respite to the US dollar, exerting some pressure on the non-yielding yellow metal.

The USD bulls, however, remained on the sidelines amid expectations for additional US fiscal stimulus and increasing bets for further monetary easing by the Fed. The lack of buying around the greenback was seen as one of the key factors that extended some support and assisted the dollar-denominated metal in attracting some dip-buying at lower levels.

Meanwhile, the latest optimism over the rollout of a vaccine for the highly contagious coronavirus disease remained supportive of the upbeat market mood. The risk-on flow tends to undermine demand for traditional safe-haven assets and might contribute towards capping any meaningful upside for the XAU/USD, warranting some caution for bullish traders.

Technical levels to watch

XAU/USD

Overview
Today last price 1843.36
Today Daily Change 1.10
Today Daily Change % 0.06
Today daily open 1842.26
 
Trends
Daily SMA20 1850.33
Daily SMA50 1879.89
Daily SMA100 1910.72
Daily SMA200 1802.66
 
Levels
Previous Daily High 1844.02
Previous Daily Low 1823.77
Previous Weekly High 1876.14
Previous Weekly Low 1774.4
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1836.28
Daily Fibonacci 61.8% 1831.51
Daily Pivot Point S1 1829.35
Daily Pivot Point S2 1816.43
Daily Pivot Point S3 1809.1
Daily Pivot Point R1 1849.6
Daily Pivot Point R2 1856.93
Daily Pivot Point R3 1869.85

 

 

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