Gold Price Analysis: XAU/USD bulls catch a breather below $1,900


  • Gold eases from a four-day high of $1,883.08 flashed the previous day.
  • Markets await fresh clues to extend the latest risk-on sentiment.
  • Vaccine hopes, expectations of further stimulus keep the buyers positive but COVID-19 resurgence probes the bulls.
  • Cautious sentiment ahead of the first US Presidential Election debate, Brexit talks also challenge the bullion optimists.

Gold traders are waiting for extra directions to extend the biggest recovery move in a month. In doing so, the yellow metal fades the previous day’s upside momentum near $1,880 amid the pre-Tokyo open Asian trading on Tuesday.

Are bears sneaking in?

Given the commodity buyers’ pause, coupled with a lack of major data/event ahead of the key US Presidential Election debate, concerns over the short-term strength of the safe-haven metal can’t be ruled out.

Also adding questions to gold’s latest pullback could be the recent announcements by US House Speaker Nancy Pelosi who said, "We have been able to make critical additions and reduce the cost of the bill by shortening the time covered for now." The news inflates the hope of the American stimulus and can reduce the rush to risk-safety for now.

Additionally, the European Central Bank (ECB) President Christine Lagarde also showed readiness to announce further measures to keep the bloc on the recovery mode amid recent challenges.

Meanwhile, UK PM Johnson is up for announcing further helps to combat the fears of economic slowdown as the coronavirus (COVID-19) resurgence and Brexit uncertainty attack the previous optimism.

It’s worth mentioning that the rising numbers of the pandemic are pushing the UK and Europe towards strict activity restrictions while two cities of Canada, namely the Quebec City and Montreal, will be under red alert from October 01.

Amid all these plays, S&P 500 Futures gain 0.20% to 3,353 after Wall Street marked a notable bounce.

Looking forward, a light calendar in Asia may keep gold traders directed towards risk catalysts for fresh impetus. In doing so, news concerning the US aid package, virus and vaccine will join the Brexit and American Presidential Election could entertain the momentum traders.

Technical analysis

A clear break of the September 21 low of $1,882.30 becomes necessary for the bulls to attack the $1900 threshold. Though, August month’s low near $1,903 will precede 50-day EMA figures surrounding $1,908/09 to probe the gold buyers afterward. Meanwhile, sellers are less likely to enter unless the bullion prices drop below $1,848.

Additional important levels

Overview
Today last price 1881.38
Today Daily Change 19.62
Today Daily Change % 1.05%
Today daily open 1861.76
 
Trends
Daily SMA20 1930.4
Daily SMA50 1942.58
Daily SMA100 1845.41
Daily SMA200 1724.82
 
Levels
Previous Daily High 1875.23
Previous Daily Low 1852.46
Previous Weekly High 1955.66
Previous Weekly Low 1848.84
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1861.16
Daily Fibonacci 61.8% 1866.53
Daily Pivot Point S1 1851.07
Daily Pivot Point S2 1840.38
Daily Pivot Point S3 1828.3
Daily Pivot Point R1 1873.84
Daily Pivot Point R2 1885.92
Daily Pivot Point R3 1896.61

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD treads water just above 1.0400 post-US data

EUR/USD treads water just above 1.0400 post-US data

Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.

EUR/USD News
GBP/USD remains depressed near 1.2520 on stronger Dollar

GBP/USD remains depressed near 1.2520 on stronger Dollar

Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.

GBP/USD News
Gold keeps the bid bias unchanged near $2,700

Gold keeps the bid bias unchanged near $2,700

Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.

Gold News
Geopolitics back on the radar

Geopolitics back on the radar

Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures