Gold Price Analysis: XAU/USD inches closer to multi-year highs, trades around $1,810
- Gold clings to modest daily gains around $1,810.
- Greenback struggles to find demand at the start of the week.
- Wall Street looks to open in the positive territory on Monday.
The XAU/USD pair registered its highest weekly close since September of 2011 at $1,799 on Friday and continued to push higher on Monday. As of writing, the troy ounce of the precious metal was up 0.6% on the day at $1,809.66, trading below the multi-year high it set at $1,818 last Wednesday.
Eyes on Wall Street
The greenback's poor performance on Monday seems to be helping XAU/USD push higher. In the absence of significant fundamental drivers, the risk sentiment continues to impact the USD's valuation.
With major European equity indexes rising more than 1% and reflecting a risk-on market environment, the US Dollar Index is losing 0.15% on the day at 96.51. Moreover, the S&P 500 futures are up 0.75% on the day, suggesting that Wall Street's main indexes are likely to start the day on a firm footing as focus shifts to second-quarter earnings reports.
There won't be any macroeconomic data releases featured in the US economic docket and the pair is likely to extend its rally if USD continues to have a tough time attracting investors in the second half of the day.
Meanwhile, market participants will pay close attention to coronavirus figures from the US and a negative shift in sentiment could limit XAU/USD's upside.
Technical levels to watch for