Gold Price Analysis: XAU/USD steadily moves back closer to $1900 mark
- 7th October 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY, FOREX MARKET ANALYSIS
- Gold regained traction on Wednesday and recovered a part of the overnight fall.
- A modest USD pullback was seen as a key factor that benefitted the commodity.
- The risk-on mood, a pickup in the US bond yields kept a lid on any further gains.
Gold refreshed daily tops during the early European session, albeit lacked any strong follow-through and remained below the $1900 mark.
The precious metal managed to regain positive traction on Wednesday and recovered a part of the previous day’s sharp intraday pullback of around $45 from the $1920 region, or two-week tops. The uptick was exclusively sponsored by a modest US dollar pullback, which tends to benefit the dollar-denominated commodity.
However, signs of stability in the financial markets kept a lid on any strong gains for the safe-haven commodity. Investors quickly looked past the US President Donald Trump’s abrupt decision on Tuesday to cancel talks with Democrats on the economic stimulus package. This was evident from a goodish rebound in the equity markets.
The risk-on flow was reinforced by a goodish pickup in the US Treasury bond yields, which further collaborated towards capping gains for the non-yielding yellow metal. Hence, it will be prudent to wait for some strong follow-through buying before traders again start positioning for the resumption of the recent positive move.
Wednesday’s key focus will be on the release of the latest FOMC monetary policy meeting minutes. This, along with the broader market risk sentiment, will play a key role in influencing the XAU/USD and assist traders to grab some meaningful opportunities amid absent relevant market-moving economic release from the US.
Technical levels to watch
|Today last price||1892.96|
|Today Daily Change||15.18|
|Today Daily Change %||0.81|
|Today daily open||1877.78|
|Previous Daily High||1921.16|
|Previous Daily Low||1874.88|
|Previous Weekly High||1917.16|
|Previous Weekly Low||1848.82|
|Previous Monthly High||1992.42|
|Previous Monthly Low||1848.82|
|Daily Fibonacci 38.2%||1892.56|
|Daily Fibonacci 61.8%||1903.48|
|Daily Pivot Point S1||1861.39|
|Daily Pivot Point S2||1844.99|
|Daily Pivot Point S3||1815.11|
|Daily Pivot Point R1||1907.67|
|Daily Pivot Point R2||1937.55|
|Daily Pivot Point R3||1953.95|