Gold Price Analysis: XAU/USD registered highest close in nearly 8 years above $1,770

Gold closed the third straight week in the positive territory.
Risk-averse market environment provides a boost to safe-haven gold.
Markets are likely to continue to react to coronavirus headlines.

Eren Sengezer FXStreet

The troy ounce of the precious metal gained 1.5% last week and posted its highest daily/weekly close since October of 2012 at $1,771.

Heightened concerns over a second economic lockdown in the US amid the surging number of confirmed coronavirus cases caused risk-off flows to continue to dominate the financial markets. Florida reported nearly 9,000 new COVID-19 cases on Friday while Texas decided to close bars and limit restaurants' capacity to 50% to limit the spread of the virus.

Wall Street's main indexes lost between 2.4% and 2.8% on Friday to reflect the intense flight-to-safety, which ramped up the demand for safe-haven gold.

At the start of the next week, there won't be any significant macroeconomic data releases featured in the economic docket and investors are likely to react to weekend's coronavirus figures from the US.

Technical levels to watch for

XAU/USD

Overview
Today last price	1771.34
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1771.34

Trends
Daily SMA20	1732.05
Daily SMA50	1722.11
Daily SMA100	1667.98
Daily SMA200	1586.78

Levels
Previous Daily High	1772.04
Previous Daily Low	1747.59
Previous Weekly High	1779.41
Previous Weekly Low	1742.97
Previous Monthly High	1765.38
Previous Monthly Low	1670.72
Daily Fibonacci 38.2%	1762.7
Daily Fibonacci 61.8%	1756.93
Daily Pivot Point S1	1755.27
Daily Pivot Point S2	1739.21
Daily Pivot Point S3	1730.82
Daily Pivot Point R1	1779.72
Daily Pivot Point R2	1788.11
Daily Pivot Point R3	1804.17

Gold daily chart

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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