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.

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

 

 

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