Gold Price Analysis: XAU/USD fades upside momentum towards $1,850 amid mixed catalysts

  • Gold prices ease from $1,842.36 as risk-on dwindles.
  • Moderna, Pfizer flash alternate signals on supply, US President-elect Biden wants Dr. Fauci to approve the vaccine rollout.
  • US-China tussle regains market attention, stimulus headlines suggest no clear direction.
  • US NFP, risk catalysts will be the key for fresh impulse.

Gold recedes to $1,840, down 0.10% intraday, as markets in Tokyo open for Friday’s trading. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls. However, the recently mixed catalysts confuse the commodity traders.

While Moderna sees the availability of around 100 to 150 million doses of its coronavirus (COVID-19) vaccine globally in 2021, Pfizer-BioNTech cites the material supply chain for the inability to deliver the promised 100 million doses of its much-awaited vaccine. On the other than, Joe Biden praises, indirectly, US Health official Dr. Anthony Fauci while saying, “I will get the covid-19 vaccine when Dr. Fauci says it is safe and will take it publicly.”

The US-China tension intensifies as the US confirms four companies blacklisted due to possible links with the Chinese military. Additionally, US Director of National Intelligence John Ratcliffe was recently quoted stating that China is preparing for "an open-ended period of confrontation with the US," urging bipartisan action to address "the greatest threat to America today" and to "democracy around the world since World War II."

Alternatively, the Wall Street Journal reports that the US Justice Department is in talks with Huawei's Meng Wanzhou to allow her to return to China if she agrees to some wrongdoing. A deal could pave the way for the release of two detained Canadians. 

Chatters concerning the US covid stimulus suggest the House Republican leader Mitch McConnell recently praised conversation with Speaker Nancy Pelosi after turning down the bipartisan proposal of $908 billion. During the late-Thursday, US President Donald Trump showed readiness to sign the aid package if the Senate approves it.

Hence, there is no clear direction concerning either the virus or stimulus, not to for US-China relations. Though, the precious metal cheers US dollar weakness amid expectations that the cure to the pandemic is nearby.

Amid these plays, S&P 500 Futures rise 0.20% whereas stocks in Asia-Pacific trade mixed while tracking the Wall Street closing. It should, however, be noted that the US equities refreshed record highs before closing Thursday with mixed results.

Looking forward, November’s employment data for the US will be the key while updates concerning the much-awaited aid package and vaccine news can also offer notable direction.

Read: Nonfarm Payrolls Preview: Another dollar’s disappointment underway

Technical analysis

A sustained break of the three-week-old falling trend line needs to provide a daily closing beyond $1,850 to recall the bulls. Until then, gold bears can keep their eyes on May high near $1,765.

Additional important levels

Today last price 1839.7
Today Daily Change -2.56
Today Daily Change % -0.14%
Today daily open 1842.26
Daily SMA20 1850.33
Daily SMA50 1879.89
Daily SMA100 1910.72
Daily SMA200 1802.66
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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