Gold Price Analysis: XAU/USD steadies near $1,910 as risk rally remains intact


  • XAU/USD is rising for the third straight day on Tuesday.
  • Wall Street's main indexes are posting impressive gains.
  • USD is struggling to find demand as focus shifts to US election.

The XAU/USD pair gained nearly 1% on Monday and has continued to push higher on Tuesday with the greenback facing a heavy selling pressure ahead of the US presidential election. As of writing, the pair was up 0.65% on a daily basis at $1,908.

The risk-on market environment on Tuesday seems to be weighing on the USD more than it does on the precious metal. The US Dollar Index, which touched its best level in more than a month above 94 on Monday, was last seen losing 0.7% at 93.38.

Reflecting the upbeat market mood, Wall Street's main indexes are posting impressive gains on Tuesday. At the moment, the S&P 500 and the Dow Jones Industrial Average indexes are both up around 2.1% on the day.

Previewing the potential impact of the US presidential election outcome on XAU/USD, FXStreet analyst Yohay Elam said "gold heavily depends on stimulus, and the more, the merrier. The optimal scenario is a clean Democratic sweep, followed by a Trump victory. A split between President Trump and the Senate is the worst outcome."

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2020 Elections: The case for a historic Trump defeat, in five quick charts.

2020 Elections: Three states traders should watch, plus places that could provide surprises.

Gold Price Analysis: XAU/USD has three ways to go in response to the 2020 Presidential Elections.

Technical levels to watch for

XAU/USD

Overview
Today last price 1908.77
Today Daily Change 13.29
Today Daily Change % 0.70
Today daily open 1895.48
 
Trends
Daily SMA20 1899.2
Daily SMA50 1914.99
Daily SMA100 1891.33
Daily SMA200 1771.69
 
Levels
Previous Daily High 1895.79
Previous Daily Low 1873.52
Previous Weekly High 1911.46
Previous Weekly Low 1860
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1887.28
Daily Fibonacci 61.8% 1882.03
Daily Pivot Point S1 1880.74
Daily Pivot Point S2 1865.99
Daily Pivot Point S3 1858.47
Daily Pivot Point R1 1903.01
Daily Pivot Point R2 1910.53
Daily Pivot Point R3 1925.28

 

 

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