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.

Dhwani Mehta FXStreet

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

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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