Gold slips below $1900 mark, fresh session lows

  • Gold witnessed some fresh selling at higher levels and has now drifted into the negative territory.
  • A modest pickup in the USD demand, stability in the equity markets contributed to the pullback.
  • The US political uncertainty and coronavirus jitters might help limit deeper losses, at least for now.

Gold dropped to fresh session lows in the last hour, with bears now looking to extend the downward trajectory further below the $1900 round-figure mark.

The precious metal failed to capitalize on its early uptick, instead met with some fresh supply near the $1910 region amid the emergence of some fresh buying around the US dollar. Growing market worries about the second wave of COVID-19 cases in Europe and the United States continued lending some support to the greenback's status as the global reserve currency. This, in turn, was seen as a key factor exerting some pressure on the dollar-denominated commodity.

Apart from this, signs of stability in the equity markets, following the overnight selloff in the US equity markets, further undermined demand for the safe-haven precious metal. However, investors remain concerns about a further escalation in diplomatic tensions between the world's two largest economies. This, along with the uncertain US political situation, should benefit the XAU/USD and help limit any deeper losses, at least for the time being.

The US-China tensions mounted over a potential $2.4 billion sale of the US anti-ship missiles to Taiwan. China reacted to the news by slapping sanctions on US companies. Separately, China's Foreign Ministry was out with a statement, uring the US to withdraw Taiwan arms sales plan and stop both arms sales and military contact with Taiwan.

Meanwhile, the market might have already started pricing in a strong Democratic victory at the upcoming US election on November 3. However, the increased uncertainty about the actual outcome might continue to drive some haven flows and lend some support to the XAU/USD. This makes it prudent to wait for some strong follow-through selling before traders start positioning for an extension of the recent pullback from the $1931-33 supply zone.

Market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data. This, along with the broader market risk sentiment and developments surrounding the coronavirus saga, might influence the USD price dynamics and produce some meaningful trading opportunities around gold.

Technical levels to watch


Today last price 1899.94
Today Daily Change -2.11
Today Daily Change % -0.11
Today daily open 1902.05
Daily SMA20 1902.86
Daily SMA50 1921.41
Daily SMA100 1883.41
Daily SMA200 1763.61
Previous Daily High 1908.66
Previous Daily Low 1891.32
Previous Weekly High 1931.54
Previous Weekly Low 1894.48
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1902.04
Daily Fibonacci 61.8% 1897.94
Daily Pivot Point S1 1892.69
Daily Pivot Point S2 1883.34
Daily Pivot Point S3 1875.35
Daily Pivot Point R1 1910.03
Daily Pivot Point R2 1918.02
Daily Pivot Point R3 1927.37



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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.2150 amid upbeat German data

EUR/USD has been rising above 1.2150 after the German ZEW Economic Sentiment gauge beat expectations with 84.4 points. Earlier, concerns about inflation boosted the dollar. 


GBP/USD trades off the highs amid risk-off mood, ahead of Bailey

GBP/USD is trading above 1.41 but off the fresh highs. The safe-haven dollar is gaining ground amid fears of inflation. UK PM Johnson's announcement of additional easing of restrictions boosted the pound on Monday. BOE Governor Andrew Bailey is set to speak later on.


200-DMA might cap XAU/USD ahead of US CPI on Wednesday

Gold refreshed multi-month tops on Monday, albeit lacked any strong follow-through buying. A modest USD rebound held bulls from placing fresh bets and kept a lid on any further gains.

Gold News

SHIB price skyrockets as Binance Lists Dogecoin rival Shiba Inu

“DOGE killer” Shiba Inu coin has reached a new all-time high as it rides on bullish momentum from recent crypto exchange listings. SHIB price has climbed by over 2,260% in the past week, as many investors missed out on the Dogecoin pump.

More Crypto News

Nasdaq (NDX QQQ) Technical view, key chart levels, Nasdaq tests trendline support

The Nasdaq is trading nicely from resistance to support. Friday's rally stalled at the convergence of the 9 and 21-day resistance. Monday sees the resistance work well and so the Nasdaq sells off and currently finds support at the lower trendline seen in the chart below.

Read more