Gold Price Analysis: XAU/USD attempts a tepid bounce above $1860, not out of the woods yet
The recovery in gold (XAU/USD) from weekly lows of $1852.80 has regained traction in the Asian trades this Friday, as the sentiment on the global markets remains sour amid stimulus concerns and growing covid fears.
The ultimate safe-haven, gold, is benefiting from a risk-off environment induced by US Treasury Secretary Steven Mnuchin’s abrupt call to end most of the covid crisis-response programs the Fed deemed vital to keeping the economy stable.
China leaves rates unchanged, gold falls through long-term support
Gold's unimpressive price action continues, despite the positive news from Washington DC. Having dropped to $1850.00 overnight, it could not recover all of those losses as the fiscal talk headlines hit the wires. It finished the session 0.35% lower at $1866.00 an ounce.
Gold has now broken trendline support at $1871.00 an ounce, that extends back to April. The daily close below this level is a negative technical development. Gold has initial support at $1850.00 an ounce, but the technical picture suggests losses have the potential to extend all the way to its 200-DMA, today at $1794.00 an ounce. Resistance is at today at $1874.00 an ounce, followed by $1900.00 an ounce.
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