Gold Price Analysis: XAU/USD struggles for a firm direction above $1,800

• Gold prices keep the range between $1,790 and $1,818.17.
• Pandemic fears favor the bulls, expected stimulus, equity gains tame immediate upside.
• EU leaders struggling over the aid package, US-China continues to dislike each other.
• A light calendar keeps traders directed towards risk catalysts for fresh impulse.

Gold recedes from $1,811 to $1,807.68, currently around $1,808.50, during the early Monday morning in Asia. In doing so, the yellow metal stays mildly positive inside a choppy range around $1,800. The fears of the coronavirus (COVID-19) and the Sino-American tussle join the European Union (EU) leaders’ inability to agree over the much-awaited stimulus. On the contrary, gains in equities as well as the multi-year high price level keep the traders cautious.

Bulls remain sceptical as bears search for entries…

Although risk catalysts like virus and tussle between the US and China join the broad US dollar weakness favor the Gold buyers, the bullion’s surge to the multi-year high seems to fade the upside momentum off-late. The reason could be cited in the metal’s latest performance between $1,790 and the multi-year high around $1,818. While the fundamentals remain supportive to the bulls, bears are cheering the run-up in global share prices to seek entries.

The latest virus numbers suggest new cases from Texas grew above 7,300, with 98 deaths, on Sunday. Further, Australia’s Victoria marked 363 new cases that pushed the government to announce strict social distancing measures. Elsewhere, Japanese policymakers are also struggling with a surge in cases from the capital Tokyo whereas Asian countries like India are waiting for the numbers to recede.

On the other hand, decision-makers in the most developed countries, except for the European Union (EU), have signaled their readiness to offer more stimulus packages. However, the bloc leaders are still jostling over 750 million Euro of the aid bundle.

It’s worth mentioning that the US dollar remains pressured with the latest Michigan Consumer Sentiment Index indicating early signals of the economic weakness.

Amid all these plays, S&P 500 Futures seesaw above 3,200 after Wall Street marked mixed results on Friday. Further, the US 10-year Treasury yields remain stuck around 0.62%.

Considering the lack of major data/events on the economic calendar, traders will keep eyes on the risk catalysts for fresh impetus. In doing so, virus updates and the US-China news, coupled with any breaking from the EU summit, will be the key to watch.

Also read: S&P 500 Index Weekly Forecast: Nothing but blue skies from now on?

Technical analysis

Although $1,800 serves as the immediate support, sellers are less likely to firm up the grip unless the quote drops below 21-day SMA level of $1,789.50. Meanwhile, bulls can aim for $1,900 as far as the quote remains positive past-$1,800.