Gold Price News and Forecast: XAU/USD declines in Asia as dollar catches bid

FXStreet Team FXStreet

Gold declines in Asia as dollar catches bid

Gold is entrenched in the negative territory in Asia as the US dollar, the shiny metal's biggest nemesis, is benefitting from the renewed risk aversion in the equity markets. The yellow metal turned lower from $1,638 in early Asia and is hovering at session lows near $1,614 per ounce at press time, representing a 0.75% decline on the day.

Meanwhile, the futures tied to the S&P 500 are down 0.75% and stocks in Asia are also flashing red. The equities have come under pressure as the coronavirus outbreak gathered pace in the US over the weekend. Stocks put on a good show last week, possibly on the back of the fiscal and monetary stimulus lifelines provided by the US and other nations across the globe.

XAU/USD

Overview
Today last price	1614.76
Today Daily Change	-11.90
Today Daily Change %	-0.73
Today daily open	1626.66

Trends
Daily SMA20	1591.73
Daily SMA50	1588.7
Daily SMA100	1541.74
Daily SMA200	1509.29

Levels
Previous Daily High	1632.35
Previous Daily Low	1614.45
Previous Weekly High	1644.54
Previous Weekly Low	1482.74
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1621.29
Daily Fibonacci 61.8%	1625.51
Daily Pivot Point S1	1616.62
Daily Pivot Point S2	1606.59
Daily Pivot Point S3	1598.72
Daily Pivot Point R1	1634.52
Daily Pivot Point R2	1642.39
Daily Pivot Point R3	1652.42

Gold seesaws around $1,630 as coronavirus woes prevail

Global markets continue to struggle with the coronavirus (COVID-19) pessimism as Gold takes rounds to $1,630, currently up 0.10% near $1,628, amid Monday’s Asian session. While the weekend headlines suggested US President Donald Trump removing quarantine from the hot-spot, the latest extension to social-distancing till April 30 seems to weigh on the risk-tone.

US President Trump, in his latest Coronacvirus Task Force Briefings, said to extend the social distancing till April 30. The Republican leader also anticipated that the highest point in death rates from the virus is likely to hit in two weeks. However, his teammates like Anthony S. Fauci and Deborah Birx might not agree as they earlier projected a heavy increase in the pandemic death toll and infection numbers.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold: Fed’s rate decision to drive the next move

Gold reflects a subdued performance at the start of the Federal Reserve’s (Fed) monetary policy week at around $4,330. Fed’s interest rate expectations heavily influenced last week after the release of the hot United States (US) Producer Price Index (PPI) and Consumer Price Index (CPI) reports for August.

Bitcoin consolidates, Ethereum faces hurdle, XRP nears key support

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) start the week near crucial technical levels after a broadly bearish performance, correcting over 4%, 1.5% and 5% last week. BTC consolidates around $77,600, while ETH approaches key $2,550 resistance. Meanwhile, XRP trades near its key level around $1.354, making this support level crucial for its near-term outlook.

US Dollar Weekly Forecast: The last line of defense

There was no respite to the downward trend for the US Dollar this week, which added to the prior week’s retracement and at some point flirted with the area of four-month lows. Indeed, after trading at levels just shy of its psychological 100.00 barrier early in the month, the US Dollar Index has come all the way down to challenge the 98.50 zone, extending its negative streak for the third month in a row.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.