Gold Price News and Forecast: XAU/USD attempts bids amid coronavirus woes-led risk-aversion

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD bounces-back towards $1910 amid growing coronavirus woes

Gold (XAU/USD) has bounced-off daily lows near $1902, as the bulls fight back control amid a sell-off in the US Treasury yields, triggered by the coronavirus concerns-induced risk-aversion.

The benchmark US 10-year Treasury yields drop further below the key 0.80% level, now trading at 0.768%, down 1.40% on a daily basis. The pessimism surrounding the American fiscal stimulus, election uncertainty and dwindling economic recovery weigh negative on the higher-yielding US rates and benefit the non-yielding gold.

GBP/USD

Overview
Today last price	1.3034
Today Daily Change	-0.0011
Today Daily Change %	-0.08
Today daily open	1.3045

Trends
Daily SMA20	1.2979
Daily SMA50	1.3009
Daily SMA100	1.2866
Daily SMA200	1.271

Levels
Previous Daily High	1.308
Previous Daily Low	1.3001
Previous Weekly High	1.3177
Previous Weekly Low	1.2895
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.305
Daily Fibonacci 61.8%	1.3031
Daily Pivot Point S1	1.3004
Daily Pivot Point S2	1.2963
Daily Pivot Point S3	1.2926
Daily Pivot Point R1	1.3083
Daily Pivot Point R2	1.3121
Daily Pivot Point R3	1.3162

Asia Market: The abyss awaits as lockdowns loom

The weaker USD and lower yields initially boosted gold overnight. Still, momentum has fallen prey to the possibility of EU nations’ lockdowns, triggered by a marked departure from the Euro. And with gold investors not banking on pre-election stimulus – and that may even get delayed if the US elections results are contested – EURUSD levels might be a crucial bellwether for gold.

While the return of curfew type containment measures in the Eurozone has not notably unnerved the EUR bulls so far, the imposition of national lockdowns could see the Euro topple and provide the magnetic attraction to drag gold lower.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold bounces back toward $5.200 amid sustained safe-haven flows

Gold bounces back toward $5,200 in Wednesday's Asian session, moving away from an over one-week low. Sustained safe-haven flows, amid escalating geopolitical tensions in the Middle East, act as a tailwind for the bullion. However, a bullish US Dollar and reduced bets for more aggressive easing by the US Fed might keep a lid on the non-yielding yellow metal ahead of the US ADP report and ISM Services PMI data due later in the day.