Gold Price Analysis: XAU/USD unable to find support, drops to test September lows near $1850

XAU/USD heads for lowest close in months, worst day since August.
US dollar extends gains versus majors, trims losses against commodity and emerging market currencies.

Matías Salord FXStreet

Gold is falling sharply on Monday amid risk appetite following the report that Pfizer’s vaccine was more than 90% effective. The yellow is down by almost 5% trading at the lowest since late September.

Earlier on Monday, it traded above $1960. From the top, it fell more than a hundred dollar and is about to test the September low that stands at $1847. A break lower would deteriorate further the technical outlook for XAU/USD.

Initially, gold started to decline on risk appetite following the vaccine announcement. Now the downside gained strength amid higher US bond yields and a recovery of the US dollar across the board. The DXY is approaching 93.00, after bouncing from monthly lows. In Wall Street, the Dow Jones is up by 3.75%, off highs.

The decline in gold is the biggest since August 11 and it could post the lowest daily close since July. The dramatic turn reflects the rapid change in the market’s attention from US elections to the vaccine.

XAU/USD

Overview
Today last price	1860.79
Today Daily Change	-91.61
Today Daily Change %	-4.69
Today daily open	1952.4

Trends
Daily SMA20	1905.36
Daily SMA50	1913.73
Daily SMA100	1899.24
Daily SMA200	1778.72

Levels
Previous Daily High	1960.4
Previous Daily Low	1935.7
Previous Weekly High	1960.4
Previous Weekly Low	1873.52
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1950.96
Daily Fibonacci 61.8%	1945.14
Daily Pivot Point S1	1938.6
Daily Pivot Point S2	1924.8
Daily Pivot Point S3	1913.9
Daily Pivot Point R1	1963.3
Daily Pivot Point R2	1974.2
Daily Pivot Point R3	1988

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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