Gold Price Analysis: XAU/USD falters near $1900 mark, up little around $1885 region

Gold struggled to capitalize on its intraday gains and faced rejection near the $1900 mark.
Sustained USD selling bias provided a modest lift to the dollar-denominated commodity.
The prevalent risk-on environment was seen exerting pressure on the safe-haven metal.

Haresh Menghani FXStreet

Gold refreshed daily lows during the early European session, albeit quickly recovered thereafter. The commodity was last seen trading with modest daily gains, just below the $1885 level.

The selling bias surrounding the US dollar picked up the pace on the first day of a new trading week after the US President Donald Trump signed a $2.3 trillion COVID-19 relief and government funding bill. This was seen as one of the key factors that provided a modest lift to the dollar-denominated commodity and pushed spot prices to four-day tops.

The uptick, however, lacked any follow-through and faltered near the $1900 round-figure mark. The US stimulus added to the latest Brexit optimism and boosted investors' confidence. This was evident from a positive trading sentiment around the equity markets, which turned out to be a key factor that capped gains for the safe-haven XAU/USD.

Despite the two-way price moves, the yellow metal remained well within the last week's broader trading range. This, in turn, warrants some caution for aggressive traders and makes it prudent to wait for a sustained move in either direction before positioning for a firm near-term trajectory amid holiday-thinned liquidity conditions.

There isn't any major market-moving economic data due for release from the US. Hence, the broader market risk sentiment and the USD price dynamics might continue to play a key role in influencing the XAU/USD. Apart from this, developments surrounding the coronavirus saga might further assist traders to grab some short-term opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price	1885.23
Today Daily Change	5.85
Today Daily Change %	0.31
Today daily open	1879.38

Trends
Daily SMA20	1851.38
Daily SMA50	1868.04
Daily SMA100	1897.69
Daily SMA200	1824.01

Levels
Previous Daily High	1879.38
Previous Daily Low	1879.38
Previous Weekly High	1906.87
Previous Weekly Low	1855.28
Previous Monthly High	1965.58
Previous Monthly Low	1764.6
Daily Fibonacci 38.2%	1879.38
Daily Fibonacci 61.8%	1879.38
Daily Pivot Point S1	1879.38
Daily Pivot Point S2	1879.38
Daily Pivot Point S3	1879.38
Daily Pivot Point R1	1879.38
Daily Pivot Point R2	1879.38
Daily Pivot Point R3	1879.38

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD flirts with two-day lows near 1.3180

GBP/USD remains on the back foot in the latter part of Tuesday’s session, sliding to the sub-1.3200 area and challenging weekly lows. Cable’s decline comes as investors assess the political uncertainty in the UK, coupled with softer-than-expected UK PMI data and the better tone in the Greenback.

EUR/USD weakens below 1.1400 on stronger Dollar

EUR/USD adds to Monday’s losses and recedes below the 1.1400 support to clinch fresh 13-month lows in the latter part of Tuesday’s NA session. The pair’s marked sell-off comes on the back of the persistent move higher in th US Dollar, always propped up by rising bets of further tightening by the Fed.

Gold loses ground to near $4,100 as inflation concerns, Fed rate hike bets build

Gold price loses momentum to around $4,100 during the early Asian session on Wednesday. The precious metal extends the decline as traders cement views on the US Federal Reserve hiking interest rates this year.

Australia CPI set to show inflation accelerated again in May

The Australian Bureau of Statistics will publish the high-impact Consumer Price Index for May on Wednesday at 01:30 GMT. Heading into the inflation test, the Australian Dollar is at its lowest level in two months against the US Dollar, having surrendered the 0.7000 psychological mark.

"Rearranging the deckchairs on the Titanic": UK's fiscal crisis outlasts another Prime Minister

Keir Starmer's resignation as the UK Prime Minister comes ten years after the Brexit referendum vote, a coincidence that financial markets have been quick to note. The British Pound trades around 1.3220 against the US Dollar on Thursday.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.