- 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.
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
Editors’ Picks
AUD/USD consolidates below 0.6600 amid the US election uncertainty
AUD/USD remains on the defensive below the 0.6600 mark on Tuesday as traders seem reluctant ahead of this week's key event risks – the US presidential election and the FOMC policy meeting. In the meantime, the unwinding of the Trump trade continues to weigh on the USD and offers some support to the currency pair.
EUR/USD posts modest gains above 1.0850, all eyes on the US presidential election results
The EUR/USD pair trades with mild gains near 1.0880 during the early Asian session on Tuesday. The US Dollar edges lower as traders brace for the outcome of the US presidential election and a likely interest rate cut from the Federal Reserve, which supports some support for the major pair.
Gold trades around $2,730
Gold price is on the defensive below $2,750 in European trading on Monday, erasing the early gains. The downside, however, appears elusive amid the US presidential election risks and the ongoing Middle East geopolitical tensions.
RBA widely expected to keep interest rate unchanged amid persisting price pressures
Australia’s benchmark interest rate is set to stay unchanged at 4.35% in November. The focus remains on Reserve Bank of Australia Governor Michele Bullock’s comments and updated economic forecasts. The Australian Dollar could wilt if RBA Governor Bullock ramps up bets for a December rate cut.
US presidential election outcome: What could it mean for the US Dollar? Premium
The US Dollar has regained lost momentum against its six major rivals at the beginning of the final quarter of 2024, as tensions mount ahead of the highly anticipated United States Presidential election due on November 5.
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.