Gold Price Analysis: XAU/USD pressured to break below $1,900
|- Gold slips in the open and draws attention to below 1900.
- Coronavirus risks are weighing on market sentiment.
XAU/USD is open to start the week lower by some 0.10% despite a slide in the greenback on Friday by 0.20%.
The market is range bound and trendless with election and stimulus uncertainty whipsawing prices from day-to-day.
A second wave of the coronavirus gathering pace is also problematic for investor sentiment, although the recent news of an FDA approval for remdesivir gave a hint of positive news as do the prospects of the Johnson Johnson trials getting back on track.
European nations are reporting record numbers of new coronavirus cases as the continent prepares for the pandemic to intensify through winter.
The wave is forcing countries to impose ever-more social-distancing rules in a bid to avoid a return to full-blown lockdowns.
Spain has announced a national state of emergency and has imposed a night-time curfew in an effort to help control a new surge in infections.
In Italy, new restrictions were also announced over the weekend.
Balance to risks tilted to the upside
''Moving forward, with all eyes still firmly on the election, gold bugs need not look too far on the horizon for new fiscal stimulus, which keeps the balance of risks still firmly tilted to the upside in precious metals,'' analysts at TD Securities argued.
''While, a potential Blue Wave fuels bullish gold expectations via a lower dollar, as more stimulus fuels a global reflationary wave, the upside could take longer to materialize as it also adds fuel to the bear steepening in the Treasury curve.''
Gold technical analysis
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.