Gold Price Analysis: XAU/USD refreshes four-month low below $1,830 on market optimism

Gold prices stay depressed after dropping to the fresh low since July 21.
Market sentiment bolsters on formal transition powers to US President-elect Joe Biden.
Odds of ex-Fed Chair Yellen’s Treasury Secretary role and vaccine hope are extra positives.

Anil Panchal FXStreet

Gold drops to the fresh multi-month low of $1,826.53, down 0.35% intraday, during early Tuesday. The yellow metal recently took offers as US President Donald Trump flashed signs to formally shift powers to Joe Biden. Also favoring the risks could be the chatters concerning Biden’s team and the coronavirus (COVID-19) vaccines.

Although hesitantly, Trump ordered General Services Administration (GSA) to begin the process of opening the White House gates for the recently elected President Biden. This helps the Democrats to escalate the talks surrounding the COVID-19 aid package while also rushing the moves to prepare a sound team to battle the covid woes.

That said, early signals suggest Janet Yellen be the next Treasury Secretary while Antony Blinken to be the next US diplomats.

It should also be noted that the recent progress in the COVID-19 vaccine and their government approval backs hopes that the virus will be tamed sooner than later, which in turn favors the risk-on mood.

However, talks that the US is forming a trade group with Western allies to combat China joins the fears of further economic damages due to the virus, until the vaccine arrives, to probe the market optimism.

That said, S&P 500 Futures gain half a percent while stocks in Asia-Pacific mark notable upside by press time.

Looking forward, updates from the US politics and virus news will be the key catalysts for the gold traders to watch. It should, however, be noted that the gold prices are likely to bear the burden of further optimism.

Technical analysis

Having broken September lows on a daily closing, gold prices are declining towards the early July top near $1,818.

Additional important levels

Overview
Today last price	1830.95
Today Daily Change	-5.17
Today Daily Change %	-0.28%
Today daily open	1836.12

Trends
Daily SMA20	1886.06
Daily SMA50	1897.46
Daily SMA100	1910.27
Daily SMA200	1795.22

Levels
Previous Daily High	1876.14
Previous Daily Low	1831.01
Previous Weekly High	1899.14
Previous Weekly Low	1852.8
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1848.25
Daily Fibonacci 61.8%	1858.9
Daily Pivot Point S1	1819.37
Daily Pivot Point S2	1802.63
Daily Pivot Point S3	1774.24
Daily Pivot Point R1	1864.5
Daily Pivot Point R2	1892.89
Daily Pivot Point R3	1909.63

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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