Gold Price Analysis: XAU/USD struggles near two-month lows, around $1850 area


  • Gold remained under some selling pressure for the fourth straight session on Thursday.
  • The prevalent USD buying continued weighing on the dollar-denominated commodity.
  • The risk-off mood did little to lend any support or stall the ongoing bearish trajectory.

Gold remained depressed through the first half of the trading action on Thursday and was last seen hovering near two-month lows, around the $1850 region.

XAU/USD prolonged this week's bearish break through the $1900 strong horizontal support and witnessed some follow-through selling for the fourth consecutive session on Thursday. The ongoing downtrend was exclusively sponsored by strengthening US dollar, which tends to undermine demand for the dollar-denominated commodity.

The second wave of coronavirus infections raised uncertainty over the economic recovery and continued boosting the greenback's status as the global reserve currency. The USD bulls seemed rather unaffected and largely shrugged off warnings by various Fed officials about the need for further stimulus measures to sustain the recovery.

Meanwhile, the prevalent risk-off environment – as depicted by a weaker tone surrounding the equity markets – did little to revive the precious metal's safe-haven demand. Even a fall in the US Treasury bond yields failed to lend any support to the non-yielding yellow metal or stall the ongoing slide to the lowest level since July 22nd.

Market participants now look forward to the US economic docket, highlighting the release of Initial Weekly Jobless Claims and New Home Sales data. This, along with a scheduled testimony by the Fed Chair Jerome Powell and Treasury Secretary Steven Mnuchin, will influence the USD price dynamics and produce some short-term trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1851.28
Today Daily Change -12.17
Today Daily Change % -0.65
Today daily open 1863.45
 
Trends
Daily SMA20 1938.58
Daily SMA50 1940.13
Daily SMA100 1842.31
Daily SMA200 1720.95
 
Levels
Previous Daily High 1905.5
Previous Daily Low 1855.89
Previous Weekly High 1973.64
Previous Weekly Low 1932.88
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1874.84
Daily Fibonacci 61.8% 1886.55
Daily Pivot Point S1 1844.39
Daily Pivot Point S2 1825.34
Daily Pivot Point S3 1794.78
Daily Pivot Point R1 1894
Daily Pivot Point R2 1924.56
Daily Pivot Point R3 1943.61

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces from 1.18 after robust German Manufacturing PMI

EUR/USD is trading above 1.18 after German Manufacturing PMI beat estimates. Other PMIs missed expectations. US fiscal stimulus and the election developments are eyed.

EUR/USD News

GBP/USD retreats amid mixed Brexit headlines

GBP/USD has retreated from the highs around 1.31 after UK minister Truss reiterated that the UK could leave without a deal. Ireland´s Coveney expressed more optimism. UK retail sales beat estimates while PMIs were mixed.

GBP/USD News

XAU/USD's reversal from $1,914 contained at $1,895 support area

Gold’s upside attempt witnessed during the Asian and European trading sessions has been halted at $1,914 on the Early US session as market sentiment plunged and the precious metal has dropped to find support at $1,895.

Gold News

Forex Today: Dollar clings to gains after the presidential debate, Bitcoin extends gains, PMIs eyed

The US dollar is holding onto Thursday's recovery, The presidential debate was more civilized than the previous one and post-event opinion polls are awaited. Earlier, hopes for a stimulus bill faded and allowed the dollar to recover. PMIs and COVID-19 statistics stand out on Friday.

Read more

WTI hits one-week low at $39.55 after Baker Hughes’ report

Front-month WTI futures’ reversal from day tops near $41 has extended to one-week lows at $39.55 on Friday after Baker Hughes reported that US oil and gas rigs increased to their highest level since May last week.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures