Gold Price Analysis: XAU/USD in bearish consolidation below $1840, remains vulnerable


  • Gold licks its wounds below $1840, not out of the woods yet.
  • Vaccine progress, stronger US data hammer gold prices.
  • Focus on vaccine updates and risk sentiment for fresh impetus.

Gold (XAU/USD) is nursing losses in Tuesday’s Asian trading, having slumped 2% on Monday to reach the lowest levels in four months at $1831.

The yellow metal fades its recovery attempts above $1840 from multi-month lows, as the bears retain control after the price breached the long-held, critical support at $1850.

The main catalyst behind gold’s breakdown was the unexpectedly strong US Markit Preliminary Manufacturing and Services PMIs for November, which suggested a robust economic recovery from the coronavirus pandemic blow and boosted the US dollar alongside the stocks.

Further, expectations for the rapid rollout of the coronavirus vaccines in the US and the UK combined with promising results of the vaccine trials caused investors to flock to riskier assets at the expense of the traditional safe-haven gold. The UK drugmaker AstraZeneca announced its vaccine has 90% efficacy without any serious side effects.

The vaccine progress back the narrative that life could likely return to normalcy in 2021 and therefore, boost a quicker global economic rebound, which could imply a lesser need for additional fiscal and monetary stimulus – a negative for gold.

Attention now turns towards the US CB Consumer Confidence data due later in the NA session for fresh dollar trades, as markets appear to have shifted their focus back on the fundamentals. In the meantime, the vaccine updates and sentiment on the global markets will continue to play out.

Gold technical levels

The bears could test the multi-month lows of $1831 if the selling resumes. The next critical support awaits at the psychological $1800 level. To the upside, the $1850 level offers immediate resistance. The bulls need to recapture 21-DMA at $1883 to ensure a sustained recovery.

Gold additional levels

XAU/USD

Overview
Today last price 1837.40
Today Daily Change -35.48
Today Daily Change % -1.89
Today daily open 1872.95
 
Trends
Daily SMA20 1889.36
Daily SMA50 1899.87
Daily SMA100 1909.75
Daily SMA200 1793.96
 
Levels
Previous Daily High 1879.85
Previous Daily Low 1860.94
Previous Weekly High 1899.14
Previous Weekly Low 1852.8
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1872.63
Daily Fibonacci 61.8% 1868.16
Daily Pivot Point S1 1862.64
Daily Pivot Point S2 1852.34
Daily Pivot Point S3 1843.73
Daily Pivot Point R1 1881.55
Daily Pivot Point R2 1890.16
Daily Pivot Point R3 1900.46

 

 

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

AUD/USD looks at the RBA for near-term direction

AUD/USD looks at the RBA for near-term direction

AUD/USD resumed its rebound and briefly surpassed the 0.6600 barrier on the back of the renewed and marked resurgence of the downward bias in the US Dollar. Investors, in the meantime, expect the RBA to keep its rates unchanged on Tuesday.

AUD/USD News
EUR/USD: Price action hinges on the US election and the Fed

EUR/USD: Price action hinges on the US election and the Fed

EUR/USD managed to trespass the key 1.0900 hurdle and print new highs following the Greenback’s offered stance as investors warmed up for the US election and the FOMC event later in the week.

EUR/USD News
Gold trades around $2,730

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. 

Gold News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum (ETH) is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. 

Read more
US presidential election outcome: What could it mean for the US Dollar?

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.

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