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

  • Gold keeps pullback from $1,889.86, latest inaction portrays a range of $5 below $1,880.
  • Risks remain heavy amid the virus woes, cautious sentiment ahead of the US elections.
  • Delay in the American stimulus, US dollar strength also probe gold buyers.
  • Monthly PMI data can offer immediate direction, US presidential voting will be the key.

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.

Additional important levels

Today last price 1878.98
Today Daily Change 0.00
Today Daily Change % 0.00%
Today daily open 1878.98
Daily SMA20 1900.09
Daily SMA50 1915.66
Daily SMA100 1889.63
Daily SMA200 1770.07
Previous Daily High 1889.86
Previous Daily Low 1864.44
Previous Weekly High 1911.46
Previous Weekly Low 1860
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1880.15
Daily Fibonacci 61.8% 1874.15
Daily Pivot Point S1 1865.66
Daily Pivot Point S2 1852.34
Daily Pivot Point S3 1840.24
Daily Pivot Point R1 1891.08
Daily Pivot Point R2 1903.18
Daily Pivot Point R3 1916.5



Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content

Recommended content

Editors’ Picks

EUR/USD slides to multi-month lows below 1.0650

EUR/USD slides to multi-month lows below 1.0650

EUR/USD stays under heavy bearish pressure and trades at its lowest level since November below 1.0650. Divergent ECB-Fed policy outlooks and the risk-averse market atmosphere keep the US Dollar strongly bid and weigh on the pair.


GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends decline below 1.2450 on sustained USD strength

GBP/USD extends losses and trades at fresh multi-month lows below 1.2450 even after the January month UK GDP was revised higher to 0.3%. The negative shift seen in risk mood fuels another leg higher in the USD and drags the pair lower.


Gold advances to new historic high above $2,400

Gold advances to new historic high above $2,400

Gold gathers bullish momentum ahead of the weekend and trades at a new record high above $2,400. Escalating geopolitical tensions help XAU/USD continue to push up despite the broad-based US Dollar strength.

Gold News

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Robert Kiyosaki steers clear from ETFs, opts for holding Bitcoin directly instead

Rich Dad Poor Dad author Robert Kiyosaki says he will not buy Bitcoin ETFs. Kiyosaki stated his dislike for Wall Street’s financial products and preferred packaging his own. 

Read more

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more Premium

Five fundamentals for the week ahead: Israel-Iran tensions, US Retail Sales, and more

US Retail Sales data will provide an updated snapshot of the health of the economy. Chinese GDP may confirm the narrative that Beijing's stimulus is working. UK inflation data may push the Bank of England to early rate cuts.

Read more