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.

Haresh Menghani FXStreet

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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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