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

XAU/USD

Overview
Today last price 1895.79
Today Daily Change 16.81
Today Daily Change % 0.89
Today daily open 1878.98
 
Trends
Daily SMA20 1900.09
Daily SMA50 1915.66
Daily SMA100 1889.63
Daily SMA200 1770.07
 
Levels
Previous Daily High 1889.86
Previous Daily Low 1864.44
Previous Weekly High 1911.46
Previous Weekly Low 1860
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1880.15
Daily Fibonacci 61.8% 1874.15
Daily Pivot Point S1 1865.66
Daily Pivot Point S2 1852.34
Daily Pivot Point S3 1840.24
Daily Pivot Point R1 1891.08
Daily Pivot Point R2 1903.18
Daily Pivot Point R3 1916.5

 

 

 

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