Gold Price Analysis: XAU/USD retreats to $1,900 area, gains more than $10

Gold has gone into a consolidation phase after rising above $1,910.
Market mood turns sour on latest headlines on US stimulus talks.
US Dollar Index remains on track to close in the negative territory.

Eren Sengezer FXStreet

The troy ounce of the precious metal dropped to its lowest level in nearly a week at $1,882 on Wednesday but staged a decisive rebound in the second half of the day. After climbing to a daily high of 1,913, the XAU/USD pair has gone into a consolidation phase and was last seen gaining 0.65% on the day at $1,903.70.

USD recovers modestly on safe-haven flows

Earlier in the day, the broad-based selling pressure surrounding the greenback helped XAU/USD push higher. However, the latest headlines surrounding the coronavirus relief bill negotiations in the US caused Wall Street's main indexes to turn red and helped the USD limit its losses.

US Treasury Secretary Mnuchin said on Wednesday that it was not going to be easy to reach a deal with Democrats before the presidential election despite the fact that they have been making progress on certain issues.

Reflecting the cautious market mood, major equity indexes in the US are down between 0.6% and 1.1%. Meanwhile, the US Dollar Index, which touched a daily low of 92.25, is losing 0.2% at 93.35.

There won't be any significant macroeconomic data releases in the remainder of the day and the USD's market valuation is likely to continue to impact the pair's movements.

Technical levels to watch for

XAU/USD

Overview
Today last price	1901.34
Today Daily Change	10.07
Today Daily Change %	0.53
Today daily open	1891.27

Trends
Daily SMA20	1902.22
Daily SMA50	1935.85
Daily SMA100	1866.11
Daily SMA200	1747.88

Levels
Previous Daily High	1925.48
Previous Daily Low	1886.58
Previous Weekly High	1930.62
Previous Weekly Low	1873.01
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1901.44
Daily Fibonacci 61.8%	1910.62
Daily Pivot Point S1	1876.74
Daily Pivot Point S2	1862.21
Daily Pivot Point S3	1837.84
Daily Pivot Point R1	1915.64
Daily Pivot Point R2	1940.01
Daily Pivot Point R3	1954.54

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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