Gold Price Analysis: XAU/USD’s rebound extends to levels near $1,900
- Gold extends recovery from $1,860 lows to approach $1,900.
- XAU/USD appreciates amid a brighter market mood.
Gold futures have appreciated $17 so far today, extending the rebound from last week’s lows at $1,860 to reach session highs at $1895 at the time of writing.
Gold appreciates amid a brighter market sentiment
The yellow metal has accelerated its recovery on Monday as a brighter market mood has undermined US dollar strength, triggering a modest recovery of some risky assets. Equity markets have opened the week on a strong footing, to pare losses following the sharp declines performed last week. The Dow Jones advanced 1.6% on Monday, with the Nasdaq and the SP Indexes 0.4% and 1.2% up respectively
The positive Chinese and US manufacturing figures have boosted market mood earlier today, easing concerns about the spread of COVID 19 infections and the second wave of lockdowns that are being introduced in an attempt to curb it.
Furthermore, the upcoming US presidential elections are prompting investors to unwind their positions, due to the uncertainty of the results. This may have also contributed to easing US dollar strength.
The market anticipates a Democrat victory on Tuesday, the investors, however, are extremely sceptical about the polls after the lessons learned four years ago and seem to be tasking a more cautious approach, concerned that a contested election that might trigger sharp price moves.
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.
