Gold Price Analysis: XAU/USD licks wounds above $1,800 as market optimism fades
- Gold extends corrective recovery from 4.5-month low.
- Virus updates, trade/political news probe US stimulus hopes.
- Thanksgiving Day can challenge the momentum traders amid a light calendar elsewhere.
Gold prices probe intraday high near $1,812, up 0.30% on a day, during the early Thursday. In doing so, the yellow metal marks the highest gains in a week while trying to bounce off the lowest since mid-July, marked on Tuesday, amid mixed catalysts.
Upbeat market sentiment led by the US President-elect Joe Biden’s welcome couldn’t last long as the downbeat data from American joined the 60 million global coronavirus (COVID-19) cases, not to forget extended partial lockdowns in Germany, to challenge the bulls.
Also on the negative side are chatters surrounding the inabilities by the US and China to deliver only half of the trade promises in the last 10 months. Further, the Trump administration’s sanctions on the four firms from Russia and China also challenge the market sentiment. On the same line, Chinese state media warns Biden over his comments on Taiwan and adds to the fears of trade/political tension among the world’s top two economies.
It’s worth mentioning that Brexit fears are back on the table with fisheries continue to drag the talks.
Meanwhile, the vaccine hopes remain on the table and the Fed is also ready to do what’s needed, though not for now, per the latest FOMC minutes.
Amid these catalysts, S&P 500 Futures rise 0.17% while stocks in Japan, per Nikkei 225, are up 0.40%. Further, Australia’s ASX 200 and New Zealand’s NZX 50 are mildly offered by press time.
Given the US holiday and a light calendar elsewhere, gold buyers are likely to struggle in extending the latest recovery moves.
Technical analysis
Pin bar on the daily (D1) chart above 200-day SMA suggests further bounce off $1,798 key support. Though, September lows around $1,848/49 challenge the gold buyers.
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.