fxs_header_sponsor_anchor

News

Gold Price Analysis: XAU/USD remains depressed near $1975 level, lacks follow-through

  • Gold struggled to preserve intraday gains and turned negative during the European session.
  • The risk-on mood, a modest USD uptick exerted some downward pressure on the commodity.
  • COVID-19 jitters, reviving hopes for US fiscal stimulus helped limit the downside for the metal.

Gold refreshed daily lows, around the $1870 region during the mid-European session, albeit lacked any follow-through selling. The commodity was last seen trading in the neutral territory, just above the $1975 level and remained well within the previous day's broader trading range.

The precious metal failed to capitalize on its early uptick, instead met with some fresh supply near the $1884-85 region and was being pressured by a combination of factors. The global risk sentiment remained well supported by the optimism over an effective vaccine for the highly contagious coronavirus disease. This was evident from the prevalent bullish tone around the equity markets, which undermined traditional safe-haven assets and capped the upside for the XAU/USD.

Apart from this, a modest pickup in the US dollar further exerted some downward pressure on the dollar-denominated commodity. That said, investors seemed reluctant to place any aggressive bearish bets amid growing worries about the continuous surge in new COVID-19 cases in the United States. This, along with reviving hopes for additional US fiscal stimulus, might hold the USD bulls from placing aggressive bets and help limit the downside for the non-yielding yellow metal.

Meanwhile, a partial holiday in the US markets – in observance of Veterans Day – could further restrict any big movements in either direction. Hence, it will be prudent to wait for some strong follow-through selling before traders start positioning for an extension of this week's sharp pullback from near two-month tops, around the $1965 region touched on Monday.

Technical levels to watch

 

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.