- Gold managed to find decent support ahead of the $1800 mark and reversed an intraday dip.
- The prevalent cautious mood, weaker US bond yields extended some support to the metal.
- A goodish pickup in the USD demand kept a lid on any meaningful gains for the commodity.
Gold struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1830-32 region.
The precious metal witnessed some selling during the early part of the trading action on Monday and dropped to one-and-half-month lows, albeit managed to find decent support ahead of the $1800 mark. The prevalent cautious mood extended some support to traditional safe-haven assets and assisted the XAU/USD to attract some dip-buying.
Friday's disappointing US Retail Sales added to growing market worries about the potential economic fallout from the continuous surge in new COVID-19 cases. The risk-off mood was evident from a weaker trading sentiment around the equity markets and reinforced by sliding US Treasury bond yields, which further benefitted the non-yielding yellow metal.
However, the emergence of some fresh US dollar buying kept a lid on any runaway rally for the dollar-denominated commodity, rather prompted some selling near 50-hour SMA. The mentioned barrier is pegged near the $1840 region, which should now act as a key pivotal point for short-term traders amid absent relevant market moving economic releases from the US.
From a technical perspective, sustained weakness below the very important 200-day SMA might have already set the stage for an extension of the recent downfall. That said, traders might still wait for a sustained weakness below the $1800 mark before confirming the bearish bias and positioning for any further depreciating move for the XAU/USD.
Technical levels to watch
|Today last price||1831.81|
|Today Daily Change||6.07|
|Today Daily Change %||0.33|
|Today daily open||1825.74|
|Previous Daily High||1857.02|
|Previous Daily Low||1823.4|
|Previous Weekly High||1863.83|
|Previous Weekly Low||1816.96|
|Previous Monthly High||1906.87|
|Previous Monthly Low||1775.52|
|Daily Fibonacci 38.2%||1836.24|
|Daily Fibonacci 61.8%||1844.18|
|Daily Pivot Point S1||1813.75|
|Daily Pivot Point S2||1801.77|
|Daily Pivot Point S3||1780.13|
|Daily Pivot Point R1||1847.37|
|Daily Pivot Point R2||1869.01|
|Daily Pivot Point R3||1880.99|
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