Gold spikes to two-day tops, inching back closer to $1900 mark


  • Gold witnessed some short-covering move on Friday amid renewed USD selling bias.
  • Weaker risk sentiment, sliding US bond yields remained supportive of the move up.
  • Bulls might still wait for some strong follow-through buying before placing fresh bets.

Gold added to its intraday gains and jumped to two-day tops, around the $1890 region during the early North American session.

The precious metal witnessed some short-covering move on the last trading day of the week and moved away from one-month lows set in the previous session. The latest leg of a sudden spike over the past hour or so could be attributed to the emergence of some fresh selling around the US dollar, which tends to benefit dollar-denominated commodities, including gold.

The USD bulls refrained from placing fresh bets, instead opted to take some profits off the table amid growing wariness about the actual outcome of the US presidential election next week. The greenback was also pressured by sliding US Treasury bond yields, which extended some additional support to the non-yielding yellow metal and remained supportive of the intraday move up.

Apart from this, possibilities of some intraday trading stops being triggered on a sustained move above the $1875-77 region could also be cited as one of the factors fueling the momentum. Hence, it will be prudent to wait for some strong follow-through strength before confirming that the XAU/USD has found a near-term bottom and positioning for any further appreciating move.

On the economic data front, mostly upbeat second-tier US macro data did little to impress the USD bulls or provide any meaningful impetus. Hence, the USD price dynamics might continue to act as an exclusive driver of the commodity's move on the last trading day of the week.

Technical levels to watch

XAU/USD

Overview
Today last price 1887.46
Today Daily Change 19.60
Today Daily Change % 1.05
Today daily open 1867.86
 
Trends
Daily SMA20 1901.01
Daily SMA50 1916.89
Daily SMA100 1888.15
Daily SMA200 1768.49
 
Levels
Previous Daily High 1885.05
Previous Daily Low 1860
Previous Weekly High 1931.54
Previous Weekly Low 1894.48
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1869.57
Daily Fibonacci 61.8% 1875.48
Daily Pivot Point S1 1856.89
Daily Pivot Point S2 1845.92
Daily Pivot Point S3 1831.84
Daily Pivot Point R1 1881.94
Daily Pivot Point R2 1896.02
Daily Pivot Point R3 1906.99

 

 

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