Gold Price Analysis: XAU/USD struggles to keep Friday’s recovery above $1,850

Gold prices remain mostly choppy between $1,877.30 and $1,879.45 during the early Asian trading on Monday. The yellow metal refreshed October month’s low on Thursday before rising for the first time in two days on Friday. However, traders have turned cautious ahead of the key events as November begins.

Nothing positive except for the US dollar…

Be it the worsening coronavirus (COVID-19) conditions or the delay in the US COVID-19 aid package, not to forget about the jitters ahead of the American presidential election, everything weighs the risks. The UK has been the latest European major to announce a national lockdown as cases grew 50,000 daily for the last few days and fears of double the death toll that the first wave mount. On the other hand, the American Congress fails to offer any stimulus and disappointed markets ahead of the key US elections where the Democratic victory is widely anticipated.

Elsewhere, Brexit talks have finally started flashing positive signals and so do the US economics, which in turn help the US dollar index (DXY) to probe the late-September highs.

Data from China, namely the official PMIs, came out positive for October and offered another challenge to the gold traders.

As a result, equities have been downbeat but the US 10-year Treasury yields rise to the early-June highs.

For now, China’s Caixin Manufacturing PMI and the US ISM Manufacturing PMI for October can offer nearby directions to market players. However, major attention will be paid to the covid headlines and the US election updates for the fresh impetus.

Technical analysis

Considering the metal’s pullback from 100-day SMA, currently around $1,890, on Friday, Gold sellers are likely to remain hopeful of attacking lows marked during October and September, respectively near $1,860 and $1,849.