Gold Price News and Forecast: XAU/USD (mostly) hinges on Trump´s electoral chances

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD pressured to break below $1,900

XAU/USD is open to start the week lower by some 0.10% despite a slide in the greenback on Friday by 0.20%. The market is range bound and trendless with election and stimulus uncertainty whipsawing prices from day-to-day.

A second wave of the coronavirus gathering pace is also problematic for investor sentiment, although the recent news of an FDA approval for remdesivir gave a hint of positive news as do the prospects of the Johnson Johnson trials getting back on track.

XAU/USD

Overview
Today last price	1899.08
Today Daily Change	-1.82
Today Daily Change %	-0.10
Today daily open	1900.9

Trends
Daily SMA20	1901.83
Daily SMA50	1923.08
Daily SMA100	1881.38
Daily SMA200	1761.89

Levels
Previous Daily High	1914.3
Previous Daily Low	1894.48
Previous Weekly High	1931.54
Previous Weekly Low	1894.48
Previous Monthly High	1992.42
Previous Monthly Low	1848.82
Daily Fibonacci 38.2%	1902.05
Daily Fibonacci 61.8%	1906.73
Daily Pivot Point S1	1892.15
Daily Pivot Point S2	1883.41
Daily Pivot Point S3	1872.33
Daily Pivot Point R1	1911.97
Daily Pivot Point R2	1923.05
Daily Pivot Point R3	1931.79

Gold Weekly Forecast: XAU/USD (mostly) hinges on Trump´s electoral chances

"Putting pen to paper" – such commentary from Washington about a fiscal stimulus deal has been pushing gold prices higher, while pessimism about a deal held it back. With time running out toward Election Day, the next bout of cash to fuel gold prices mostly depends on the outcome.

When President Donald Trump completed his U-turn – from cutting off talks with Democrats to stating he wants a larger deal than them, gold advanced. The same happened when House Speaker Nancy Pelosi expressed optimism about striking an accord.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.