Gold Price Analysis: XAU/USD stays offered below $1,950 amid risk reset

Gold prices begin the week on a back foot while printing a three-day losing streak.
Oxford University-backed vaccine trials to resume in UK, China retaliates US sanctions.
UK’s deal with Japan adds barriers to Brexit negotiations, US policymakers still jostle over the aid package.
Risk headlines to remain as the key amid a light calendar.

Anil Panchal FXStreet

Gold carries the downbeat performance since Thursday while taking rounds to $1,940 amid the initial Asian session on Monday. The yellow metal remains pressured as the US dollar refrains from entertaining the bears and the risk catalysts flash mixed signals.

S&P 500 Futures kick-starts the week on a positive side…

Even if fears of no-deal Brexit joins the Sino-American tussle to weigh on the market sentiment, weekend news suggesting the AstraZeneca’s restart of the coronavirus (COVID-19) vaccine trials, after halting it during the last week, seems to favor the risk barometer. Also on the positive side could be comments from the European Central Bank (ECB) policymakers suggesting further easy money days.

On the other hand, the World Health Organization (WHO) marked a record single-day increase in COVID-19 cases by 307,930 in 24 hours during this weekend. Also, China’s retaliation to the US sanctions on diplomats and the looming decision on TikTok keep the world’s two largest economies at loggerheads. Furthermore, the UK’s discount to Japan for a trade deal may disappoint Brussels and is likely to have a negative impact during this week’s Brexit talks.

It should also be noted that the US Consumer Price Index (CPI) data flashed another positive signal, after the Producer Price Index (PPI), for the Federal Reserve policymakers who are to meet this week. Additionally, optimism that Libya’s oil industry will reopen after almost eight months of a halt to exports added to the market’s positive sentiment.

Against this backdrop, S&P 500 Futures add 0.73% to 3,347 by the press time. Given the risk-barometers’ positive performance, the market’s safe-haven demand declines and the same weigh on gold prices.

Looking forward, a light calendar at the week’s start may keep traders directed towards the risk headlines. Among them, Brexit, virus and China are the keywords to search for.

Technical analysis

Repeated failures to cross 21-day SMA, currently around $1,945, joins bearish MACD signals to again challenge the 50-day SMA level of $1,925.

additional important levels

Overview
Today last price	1939.88
Today Daily Change	-0.50
Today Daily Change %	-0.03%
Today daily open	1940.38

Trends
Daily SMA20	1947.38
Daily SMA50	1919.63
Daily SMA100	1824.06
Daily SMA200	1702.55

Levels
Previous Daily High	1954.78
Previous Daily Low	1937.29
Previous Weekly High	1966.54
Previous Weekly Low	1906.62
Previous Monthly High	2075.32
Previous Monthly Low	1863.24
Daily Fibonacci 38.2%	1943.97
Daily Fibonacci 61.8%	1948.1
Daily Pivot Point S1	1933.52
Daily Pivot Point S2	1926.66
Daily Pivot Point S3	1916.03
Daily Pivot Point R1	1951.01
Daily Pivot Point R2	1961.64
Daily Pivot Point R3	1968.5

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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