Gold Price Analysis: XAU/USD hits fresh monthly lows near $1,870 and remains vulnerable


  • Risk aversion boosts US dollar and hits gold that falls below the 20-day moving average. 
  • Wall Street tumbles amid concerns on a resurgence in coronavirus cases.

Gold is falling sharply and is down almost two percent, even after trimming losses. XAU/USD tumbled to $1,868/oz reaching the lowest level since late-September. As of writing, it trades at $1,880 off lows as risk aversion eases across financial markets.

The Dow Jones drops 2.45% and the Nasdaq slides 2.70%. In Europe, the DAX tumbled 4.10% and the CACA 40 3.45%. The increase in coronavirus cases prompts officials across Europe to consider lockdowns measures that should weigh on the economy.

Risk aversion did not trigger the demand for gold. Not even lower US yields offered support to the metal that suffered like most assets.

From a technical perspective, the recent decline leaves XAU/USD vulnerable to more losses. A consolidation below $1,870 would expose the next support seen at the September of $1,850. On the upside, a recovery above $1,900 would alleviate the bearish pressure. Only a rally that surpass $1,930 (downtrend line) would change the bias to bullish.

Technical levels

 

 

XAU/USD

Overview
Today last price 1877.6
Today Daily Change -30.20
Today Daily Change % -1.58
Today daily open 1907.8
 
Trends
Daily SMA20 1903.35
Daily SMA50 1919.51
Daily SMA100 1885.35
Daily SMA200 1765.35
 
Levels
Previous Daily High 1911.46
Previous Daily Low 1897.92
Previous Weekly High 1931.54
Previous Weekly Low 1894.48
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1906.29
Daily Fibonacci 61.8% 1903.09
Daily Pivot Point S1 1899.99
Daily Pivot Point S2 1892.19
Daily Pivot Point S3 1886.45
Daily Pivot Point R1 1913.53
Daily Pivot Point R2 1919.27
Daily Pivot Point R3 1927.07

 

 

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