Gold Price Analysis: XAU/USD trims weekly losses towards regaining $1,900 threshold

  • Gold keeps Wednesday’s gains despite recent pullback from intraday high
  • Brexit optimism, hopes of US stimulus favor market’s mood amid the quiet session
  • EU-UK statements, US Congress moves eyed for fresh impulse before Christmas

Gold prices ease from the intraday top near $1,880 to $1,876 during early Thursday. Even so, the yellow metal stays positive for the second consecutive day amid US dollar weakness and broad risk-on mood

US President Donald Trump’s obstruction to the bills relating to defense and covid stimulus weigh on the US dollar index (DXY) that drops 0.13% by press time

Also weighing on the greenback, while favoring the broad risks and commodities, is US Democratic Party’s readiness to inflation the paycheck amount in the aid package from $600 to $2,000. Furthermore, chatters that the Brexit deal is imminent also favor the bulls

Even so, US President Trump’s warning to Iran and the on-going coronavirus (COVID-19) woes in the UK challenge the risk-on mood. Additionally, dull trading session amid the holidays season restricts the market moves

Against this backdrop, S&P 500 Futures join Asia-Pacific stocks to print mild gains

Looking forward, policymakers from the European Union (EU) and the UK are up for delivering Brexit statements early in the European session. Should they manage to meet the market expectations, risk-on will continue to favor gold prices

Following that, Capitol Hill will amend bills relating to defense and covid aid package, which is less likely to cause any disappointment and favor the upbeat mood

Overall, gold prices are likely to end the year 2020 on a positive note. Though the US dollar is near a multi-month low and a bounce can consolidate the yellow metal’s gains

Technical analysis

Considering the resistance to confirm the short-term rising wedge, with a downside break below $1,864, gold prices head towards the 100-day SMA level near $1,900

ADDITIONAL IMPORTANT LEVELS

OVERVIEW
Today last price 1876.04
Today Daily Change 3.45
Today Daily Change % 0.18%
Today daily open 1872.59
TRENDS
Daily SMA20 1843.28
Daily SMA50 1869.05
Daily SMA100 1901.08
Daily SMA200 1820.01
LEVELS
Previous Daily High 1878.67
Previous Daily Low 1858.92
Previous Weekly High 1896.3
Previous Weekly Low 1819.08
Previous Monthly High 1965.58
Previous Monthly Low 1764.6
Daily Fibonacci 38.2% 1871.13
Daily Fibonacci 61.8% 1866.46
Daily Pivot Point S1 1861.45
Daily Pivot Point S2 1850.31
Daily Pivot Point S3 1841.7
Daily Pivot Point R1 1881.2
Daily Pivot Point R2 1889.81
Daily Pivot Point R3 1900.95

 

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