Gold Price News and Forecast: XAU/USD ticks up to $1,860 after testing $1,850 support

FXStreet Team FXStreet

Gold Price Analysis: Bulls treading on thin ice at critical support

The price of the yellow metal is trading at $1,866.66 and has travelled between a low of $1,852.79 and a high of $1,874.11. Gold has been under pressure in recent day's, falling from the $1,960s as investment flows to the yellow metal hit their biggest slump since the Covid-19 liquidations, despite a softer US dollar.

The precious metal is cascading to the deflationary forces from lockdowns and a reversal in safe-haven flows from the vaccine announcement, as noted by analysts at TD Securities.

Record infection numbers have prompted US schools and businesses to close their shutters once again, thwarting the world's largest economy's recovery from the deepest recession since the Great Depression.

XAU/USD

Overview
Today last price	1863.18
Today Daily Change	-3.56
Today Daily Change %	-0.19
Today daily open	1866.74

Trends
Daily SMA20	1890.76
Daily SMA50	1901.22
Daily SMA100	1908.78
Daily SMA200	1792.47

Levels
Previous Daily High	1874.12
Previous Daily Low	1852.8
Previous Weekly High	1965.58
Previous Weekly Low	1850.56
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1860.94
Daily Fibonacci 61.8%	1865.98
Daily Pivot Point S1	1854.99
Daily Pivot Point S2	1843.23
Daily Pivot Point S3	1833.67
Daily Pivot Point R1	1876.31
Daily Pivot Point R2	1885.87
Daily Pivot Point R3	1897.63

Gold Price Analysis: XAU/USD ticks up to $1,860 after testing $1,850 support

Gold futures have headed south for the fourth consecutive day on Thursday, to test key support at $1,850, which, so far, remains intact as the pair bounced up to $1,860 area.

The unremitting growth of the second COVID-19 wave has returned to the spotlight after the US reported a death toll of 250,000 on Wednesday and New York City decided to close schools to curb the increase of contagions.

This news has offset investors’ optimism about the promising trial results of some coronavirus vaccines, reactivating concerns about the economic consequences of further lockdown measures and dampening the moderate risk appetite seen over the previous days.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.