Gold Price Analysis: XAU/USD ticks up to $1,910 and turns positive on the day
- Gold bounces from $1,900 support area and returns to $1,910.
- XAU/USD appreciates moderately as risk aversion eases.
Gold futures have found support right below the $1,900 area earlier today before inching up to $1,910, turning positive on daily charts. The precious metal lost ground, with the US dollar building up during the European session on Tuesday, to appreciate during the North American session with market sentiment improving moderately.
XAU/USD remains neutral around $1,900
From a wider perspective, bullion prices remain moving directionless within previous ranges, fluctuating both sides of the $1,900 level, with upside attempts capped around $1,910.
Investor’s concerns about the consequences of the second COVID-19 wave, with infections soaring in the US and in the major European economies, have crushed appetite for risk, boosting demand for the US dollar and weighing on the dollar-denominated gold.
Beyond that, renewed US-China tensions on the back of a potential sale of US missiles to Taiwan and the uncertainty about the upcoming presidential elections in the US have spooked traders away from risky assets.
The market mood seems to have improved somewhat during the US session, with US Durable Goods Orders September and Housing Prices increasing beyond expectations. Equity markets have experienced a moderate recovery and the US dollar has trimmed gains, which has offered some support for the yellow metal.
Technical levels to watch
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
