|

Gold Price Analysis: Bulls looking to extend intraday positive move beyond $1730-32 region

  • Gold stages a goodish rebound from a short-term ascending trend-line support.
  • The uptick was supported by concerns about a surge in new coronavirus cases.
  • Some follow-through buying might lift the commodity to the $1745 supply zone.

Gold built on its steady intraday positive move through the early European session and was last seen trading near daily tops, just above the $1730 level.

The commodity caught some fresh bids on the last day of the week and staged a goodish bounce from a short-term ascending trend-line support, extending from monthly lows around the $1670 region. The uptick was supported by fresh coronavirus jitters.

Investors remain concerned about a rise in new coronavirus cases overshadowed the recent optimism over a sharp V-shaped economic recovery and turned out to be one of the key factors that underpinned demand for the safe-haven precious metal.

The intraday positive move seemed rather unaffected by a strong recovery in the global equity markets. The risk-on flow was reinforced by a strong pickup in the US Treasury bond yields, albeit did little to weigh on the non-yielding yellow metal.

Meanwhile, a subdued US dollar price action did little to influence the dollar-denominated commodity. Some follow-through buying beyond the $1730-32 pivotal resistance now seems to lift the metal towards the $1745 supply zone en-route multi-year tops.

In the absence of any major market-moving economic releases from the US, traders are likely to look forward to the Fed Chair Jerome Powell's comments at a panel discussion for some meaningful opportunities later during the US session.

Technical levels to watch

XAU/USD

Overview
Today last price1732.06
Today Daily Change8.96
Today Daily Change %0.52
Today daily open1723.1
 
Trends
Daily SMA201720.39
Daily SMA501715.67
Daily SMA1001656.53
Daily SMA2001578.86
 
Levels
Previous Daily High1737.83
Previous Daily Low1717.61
Previous Weekly High1744.75
Previous Weekly Low1677.73
Previous Monthly High1765.38
Previous Monthly Low1670.72
Daily Fibonacci 38.2%1725.33
Daily Fibonacci 61.8%1730.11
Daily Pivot Point S11714.53
Daily Pivot Point S21705.96
Daily Pivot Point S31694.31
Daily Pivot Point R11734.75
Daily Pivot Point R21746.4
Daily Pivot Point R31754.97

Author

Haresh Menghani

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

More from Haresh Menghani
Share:

Editor's Picks

EUR/USD: Breakdown below trading range support near 1.1770 comes into play

The EUR/USD pair opens with a bearish gap at the start of a new week as the US-Iran war-led global flight to safety boosts the US Dollar. Spot prices, however, lack follow-through selling and manage to hold above mid-1.1700s during the Asian session.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold looks further north as Iran war boosts haven demand

Gold is taking a breather after the initial run to over one-month highs near $5,400, kicking off the new week with a bang. A global flight to safety theme, following the US-Israel joint attacks on Iran over the weekend, bolstered the demand for the traditional store of value, Gold.

Top Crypto Losers: Tezos, Toncoin, and Polkadot at crucial levels amid US-Israel strike on Iran

Altcoins such as Tezos, Toncoin, and Polkadot rank among the worst hit cryptocurrencies over the last 24 hours amid the US and Israel's attack on Iran. Tezos and Toncoin are down to crucial support levels while Polkadot remains near a crucial resistance trendline, showcasing underlying strength.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.