Gold Price Analysis: XAU/USD turns flat, around $1920 area amid risk-on mood

A subdued USD demand assisted gold to gain some positive traction on Thursday.
The risk-on mood, rallying US bond yields capped the upside for the commodity.

Haresh Menghani FXStreet

Gold struggled to preserve its intraday gains and moved into the neutral territory, around the $1920 region during the early European session.

The precious metal managed to regain some positive traction on Thursday and moved away from weekly lows, around the $1900 mark set in the previous session. The US dollar languished around its lowest level in nearly three years, which, in turn, was seen as one of the key factors lending some support to the dollar-denominated commodity.

Meanwhile, a Democrat sweep in Georgia’s Senate runoff election raised expectations for more US stimulus measures. Expectations of larger government borrowing pushed the benchmark 10-year US Treasury yield further beyond 1.0% mark, to the highest level since March and kept a lid on any strong gains for the non-yielding yellow metal.

Apart from this, hopes for a strong global economic recovery in 2021 remained supportive of the underlying bullish sentiment in the financial markets. The risk-on flow tends to undermine demand for traditional safe-haven assets and might further collaborate towards capping the upside for the XAU/USD, at least for the time being.

This makes it prudent to wait for some follow-through buying before positioning for the resumption of the recent strong positive move witnessed over the past one-and-half-months or so. Market participants now look forward to the US economic releases – usual Initial Weekly Jobless Claims and ISM Services PMI. This, along with the broader market risk sentiment might produce some trading opportunities around the XAU/USD.

Technical levels to watch

XAU/USD

Overview
Today last price	1921.46
Today Daily Change	3.10
Today Daily Change %	0.16
Today daily open	1918.36

Trends
Daily SMA20	1880.66
Daily SMA50	1868.64
Daily SMA100	1893.55
Daily SMA200	1836.52

Levels
Previous Daily High	1959.42
Previous Daily Low	1900.9
Previous Weekly High	1901.02
Previous Weekly Low	1869.32
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1923.25
Daily Fibonacci 61.8%	1937.07
Daily Pivot Point S1	1893.03
Daily Pivot Point S2	1867.71
Daily Pivot Point S3	1834.51
Daily Pivot Point R1	1951.55
Daily Pivot Point R2	1984.75
Daily Pivot Point R3	2010.07

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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