Gold Price Analysis: XAU/USD stuck in range below $1900, awaits fresh impetus


  • Gold remains buoyed by softer Treasury yields, rising virus fears.
  • Gold’s upside attempts capped by the US dollar bounce.
  • Risky-rally over vaccine optimism appears to fade, lifts USD.

Gold’s (XAU/USD) upside attempts continue to remain capped below the $1900 mark, as the metal extends its $20 range play in the European session.

Despite the latest leg higher from session lows of $1887, the further upside in the spot appears elusive, as the US dollar stages a comeback across the board.

The risk-rally driven by the optimism over the vaccine progress seems to fade amid resurfacing concerns over the surging coronavirus cases worldwide. The safe-haven demand for the greenback returns, lifting the US dollar index from four-day lows of 92.47 to 92.64, at the press time.

However, fresh virus curbs announced in some of the US states and expectations of December restrictions in Germany threaten the global economic recovery and weigh on the Treasury yields, in turn, underpinning the sentiment around non-yielding gold.

Looking ahead, fresh global virus data and sentiment on Wall Street will direct the near-term flows in gold. The US economic calendar is data-dry and hence, the bright metal will likely remain at the mercy of the US dollar dynamics.

Gold Technical levels

Immediate resistance awaits at the $1900 key level, above which the bulls will gear up for a test of the Oct 27 high of $1911.46 To the downside, Friday’s low of $1874 is the level to beat for the bears. The next cushion is aligned at $1860, the October low.

Gold: Additional levels

XAU/USD

Overview
Today last price 1894.40
Today Daily Change 6.19
Today Daily Change % 0.33
Today daily open 1888.22
 
Trends
Daily SMA20 1897.41
Daily SMA50 1906.15
Daily SMA100 1904.71
Daily SMA200 1786.34
 
Levels
Previous Daily High 1896.88
Previous Daily Low 1874.06
Previous Weekly High 1965.58
Previous Weekly Low 1850.56
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1888.16
Daily Fibonacci 61.8% 1882.78
Daily Pivot Point S1 1875.89
Daily Pivot Point S2 1863.57
Daily Pivot Point S3 1853.07
Daily Pivot Point R1 1898.71
Daily Pivot Point R2 1909.21
Daily Pivot Point R3 1921.53

 

 

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