Gold Price Analysis: XAU/USD tracks S&P 500 Futures to south amid mild risk off mood


  • Gold sellers attack intraday low, bullion drops for second consecutive day.
  • Japan keeps emergency on 10 regions, Australia weighs 5-day lockdown in Victoria.
  • New Zealand will receive vaccines earlier, US adds 100 million doses to Moderna’s contract.
  • Stimulus talks progress but Sino-American tension stays on the table even as China is off for the Lunar New Year.

Gold prices drop 0.25% to $1,821.98, intraday low of $1,821.48, during early Friday. In doing so, the yellow metal declines for the second day as risks dwindle amid mixed catalysts.

Among the positives was New Zealand’s expected delivery of the coronavirus (COVID-19) vaccine by a month as well as US President Joe Biden’s push for the vaccines gained major attention. Also on the same page is the progress over the US covid stimulus plan wherein President Biden is to meet a group of Republicans while House Speaker Nancy Pelosi eyes late-February rollout.

Additionally, chatters surrounding the UK’s anticipated boom after the covid and receding virus infections favor the risks.

On the contrary, no sign of a reduction in the virus cases in the elderly pushes Japan to extend activity restrictions in 10 regions while Australia’s Victoria may also announce a fresh lockdown amid cases of virus variants. Further, Thursday’s telephonic call between the Presidents of the US and China keeps the old terms and reignited geopolitical fears. China is also battling with Australia and the UK and the same sour the sentiment.

Amid these plays, S&P 500 Futures fail to keep the previous day’s upside momentum while declining for the third day in a week, currently down 0.15% to 3,906. Also portraying the sober mood could be Japan’s Nikkei 225, -0.45%, as well as the US 10-year Treasury yields, mostly unchanged around 1.16%.

Although China’s absence restricts the market moves, chatters over the US aid package and virus updates will join US Michigan Consumer Sentiment data to entertain momentum traders.

Read: US Michigan Consumer Sentiment February Preview: The ocular proof

Technical analysis

Failures to cross 200-day SMA, currently around $1,858, direct gold prices toward the $1,800 threshold.

Additional important levels

Overview
Today last price 1821.58
Today Daily Change -4.82
Today Daily Change % -0.26%
Today daily open 1826.4
 
Trends
Daily SMA20 1839.82
Daily SMA50 1859.56
Daily SMA100 1869.72
Daily SMA200 1856.77
 
Levels
Previous Daily High 1847.64
Previous Daily Low 1821.22
Previous Weekly High 1871.9
Previous Weekly Low 1785.02
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1831.31
Daily Fibonacci 61.8% 1837.55
Daily Pivot Point S1 1815.87
Daily Pivot Point S2 1805.33
Daily Pivot Point S3 1789.45
Daily Pivot Point R1 1842.29
Daily Pivot Point R2 1858.17
Daily Pivot Point R3 1868.71

 

 

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