Gold Price Analysis: XAU/USD's reversal from $1,914 contained at $1,895 support area

  • Gold recover attempt was capped at $1,914 to test support at $1,895 again.
  • XAU/USD lost ground with the US dollar picking up.
  • Uncertainty about US stimulus has boosted risk aversion.

Gold’s upside attempt witnessed during the Asian and European trading sessions has been halted at $1,914 on the Early US session as market sentiment plunged and the precious metal has dropped to find support at $1,895.

XAU/USD loses footing with the USD coming up

Gold futures have dropped nearly $20 from session highs, with equity markets moving into negative territory after having opened with moderate gains. The Dow Jones Index is trading 0.6% lower with the Nasdaq 0.4% below the previous closing.

Risk appetite has taken a hit during Friday’s North American session, as the investors grew increasingly anxious about the lack of progress in the US coronavirus stimulus negotiations. This has boosted demand for the safe-haven US dollar and has weighed on gold futures.

The market, however, is pricing in a Democrat victory on November 3 that would pave the path to a large relief package to support economic recovery. This is keeping US dollar bulls on check although the uncertainty about the election’s outcome might contribute to strengthening the USD as the polling day approaches.

Downside contained at $1,895

Below $1,895 support area (October 20, 22 lows) the pair might find support at $1.880 (October 8, 13 lows) and $1,872 (October 7 low). On the upside, the pair should return above the 50-day SMA, at $1,922 to ease bearish pressure and extend towards $1,934 (October 12 high) and $1,971 (September 26 high).

Technical levels to watch


Today last price 1902.9
Today Daily Change -1.22
Today Daily Change % -0.06
Today daily open 1904.12
Daily SMA20 1899.88
Daily SMA50 1923.96
Daily SMA100 1879.22
Daily SMA200 1760.15
Previous Daily High 1926.06
Previous Daily Low 1894.48
Previous Weekly High 1933.3
Previous Weekly Low 1882.46
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1906.54
Daily Fibonacci 61.8% 1914
Daily Pivot Point S1 1890.38
Daily Pivot Point S2 1876.64
Daily Pivot Point S3 1858.8
Daily Pivot Point R1 1921.96
Daily Pivot Point R2 1939.8
Daily Pivot Point R3 1953.54




Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD losses 1.1900 amid dollar’s comeback

EUR/USD has extended its gains, nearing 1.1950, but quickly turned negative now trading around 1.1880. The greenback recovers as equities fall as the market’s sentiment turns sour.


GBP/USD retreats from daily highs, holds around 1.3350

GBP/USD retreats from near 1.3400, partially undermined by Brexit woes but mostly on renewed dollar’s demand. Doubts arise about Chief EU Negotiator Barnier traveling to London.


XAU/USD trades with modest gains above $1810 level, lacks follow-through

A softer tone surrounding the USD assisted gold to gain some traction on Thursday. COVID-19 vaccine optimism might cap the upside for the safe-haven precious metal. Holiday-thinned liquidity warrants some caution before placing fresh directional bets.

Gold news

US Thanksgiving Wrap: Consumers carry October, November starts to look dicey

A triple dose of US data on Wednesday before the Thanksgiving holiday confirmed the strength of the consumer recovery even as employment problems again loom from the rising numbers of Covid-19 closures across the country.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info