Gold Price Analysis: XAU/USD seesaws around $1,800 amid mixed sentiment
- Gold prices fail to keep the late-Friday pullback from $1,794.
- S&P 500 Futures cheer the hopes of further stimulus.
- Coronavirus conditions continue to worsen, Sino-American tussle become intensifies.
Gold prices take rounds to $1,800, currently around $1,799.40, during the pre-Tokyo open Asian session on Monday. The bullion remains pressured following the two-day losing streak amid mixed clues.
Mixed clues challenge traders…
The coronavirus (COVID-19) spread and the Sino-American tussle should ideally weigh on the market’s risk-tone sentiment and help the yellow metal to remain strong. However, Friday’s optimism, backed by expectations of further stimulus and virus vaccine news, seems to restrict the safe-haven demand.
Global pandemic cases surged over 13 million with the US unfortunately leading the world. The death toll also crossed 565,000 with the World Health Organization (WHO) citing record one-day increase in new cases by 230,370.
Even so, Gilead’s comments concerning the much-championed Remdesivir suggesting that it tame the death toll seems to help the markets remain positive. Also supporting the mood could be the Wall Street Journal’s (WSJ) news suggesting that the Trump administration has a few options to punish China over the Hong Kong security law considering the city’s status as a financial hub.
Amid all these catalysts, S&P 500 Futures print 0.50% gains to 3,195 whereas the US 10-year Treasury yields stay positive around 0.64%.
Traders should keep following the virus updates, as well as news concerning the US-China tussle for near-term market direction.
Technical analysis
An ascending trend line from the early-June, currently around $1,793, restricts the bullion’s immediate downside. As a result, bulls can keep the reins and aim for a fresh record above the recently flashed $1,818.
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.
