Gold eases below $1770 level, downside seems limited

Gold witnessed a modest intraday pullback amid a recovery in the US equity futures.
A pickup in the US bond yields further exerted pressure on the non-yielding metal.
Weaker USD might extend some support to the dollar-denominated commodity.
The set-up still supports prospects for a move towards the ambitious $1800 target.

Haresh Menghani FXStreet

Gold struggled to capitalize on its early uptick back closer to multi-year tops and was last seen trading near daily lows, just below the $1770 region.

The ever-increasing number of new cases globally served as a warning that the fight against COVID-19 is not over and indicated that the road to recovery will be much slower than expected. Fading hopes of a sharp V-shaped global economic recovery continued weighing on investors' sentiment and benefitted the safe-haven precious metal.

This coupled with the emergence of some fresh US dollar selling further underpinned the dollar-denominated commodity and contributed to the early uptick on the first day of a new trading week. However, a modest rebound in the US equity futures kept a lid on any strong positive move for the metal, at least for the time being.

This coupled with a goodish intraday pickup in the US Treasury bond yields further collaborated towards capping gains, rather exerted some pressure on the non-yielding yellow metal. Despite a modest pullback, the commodity remains well within last week's broader trading range and the striking distance of multi-year tops set last Wednesday.

The range-bounce price action witnessed over the past one-week or so might still be categorized as consolidative. This, in turn, supports prospects for an extension of the near-term appreciating move towards the ambitious $1800/ounce target.

Technical levels to watch

XAU/USD

Overview
Today last price	1769.7
Today Daily Change	-1.64
Today Daily Change %	-0.09
Today daily open	1771.34

Trends
Daily SMA20	1732.05
Daily SMA50	1722.11
Daily SMA100	1667.98
Daily SMA200	1586.78

Levels
Previous Daily High	1772.04
Previous Daily Low	1747.59
Previous Weekly High	1779.41
Previous Weekly Low	1742.97
Previous Monthly High	1765.38
Previous Monthly Low	1670.72
Daily Fibonacci 38.2%	1762.7
Daily Fibonacci 61.8%	1756.93
Daily Pivot Point S1	1755.27
Daily Pivot Point S2	1739.21
Daily Pivot Point S3	1730.82
Daily Pivot Point R1	1779.72
Daily Pivot Point R2	1788.11
Daily Pivot Point R3	1804.17

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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