Gold Price Analysis: XAU/USD inches closer to multi-year highs, trades around $1,810

Gold clings to modest daily gains around $1,810.
Greenback struggles to find demand at the start of the week.
Wall Street looks to open in the positive territory on Monday.

Eren Sengezer FXStreet

The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday. As of writing, the troy ounce of the precious metal was up 0.6% on the day at $1,809.66, trading below the multi-year high it set at $1,818 last Wednesday.

Eyes on Wall Street

The greenback's poor performance on Monday seems to be helping XAU/USD push higher. In the absence of significant fundamental drivers, the risk sentiment continues to impact the USD's valuation.

With major European equity indexes rising more than 1% and reflecting a risk-on market environment, the US Dollar Index is losing 0.15% on the day at 96.51. Moreover, the S&P 500 futures are up 0.75% on the day, suggesting that Wall Street's main indexes are likely to start the day on a firm footing as focus shifts to second-quarter earnings reports.

There won't be any macroeconomic data releases featured in the US economic docket and the pair is likely to extend its rally if USD continues to have a tough time attracting investors in the second half of the day.

Meanwhile, market participants will pay close attention to coronavirus figures from the US and a negative shift in sentiment could limit XAU/USD's upside.

Technical levels to watch for

XAU/USD

Overview
Today last price	1809.68
Today Daily Change	10.48
Today Daily Change %	0.58
Today daily open	1799.2

Trends
Daily SMA20	1766.72
Daily SMA50	1737.9
Daily SMA100	1688.1
Daily SMA200	1600.95

Levels
Previous Daily High	1810.74
Previous Daily Low	1794.24
Previous Weekly High	1818.17
Previous Weekly Low	1770.16
Previous Monthly High	1785.91
Previous Monthly Low	1670.76
Daily Fibonacci 38.2%	1800.54
Daily Fibonacci 61.8%	1804.44
Daily Pivot Point S1	1792.05
Daily Pivot Point S2	1784.89
Daily Pivot Point S3	1775.55
Daily Pivot Point R1	1808.55
Daily Pivot Point R2	1817.89
Daily Pivot Point R3	1825.05

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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