Gold Price Analysis: XAU/USD steadily climbs back to $1870 level, fresh session tops
- Renewed USD selling bias assisted gold to regain positive traction on Wednesday.
- A goodish rebound in the US equity markets might keep a lid on any strong gains.
- Bulls might now wait for a sustained move beyond $1885 before placing fresh bets.
Gold maintained its bid tone through the first half of the European session and was last seen hovering near the top end of its daily trading range, around the $1870 region.
The precious metal gain some positive traction on Wednesday and recovered a part of the previous day's losses back closer to weekly lows, around the $1855 region. The uptick was exclusively sponsored by the emergence of some fresh selling around the US dollar, which tends to benefit the dollar-denominated commodity.
The USD struggled to capitalize on this week's rebound from over two-and-half-year lows. The respite provided by the US President Donald Trump's threat not to sign a long-awaited coronavirus relief bill turned out to be short-lived. Even concerns about the discovery of a new coronavirus variant did little to impress the USD bulls.
That said, a goodish rebound in the US equity futures might keep a lid on any runaway rally for the safe-haven XAU/USD. Hence, any subsequent positive move is more likely to confront a stiff resistance near the $1885-86 region, above which bulls are likely to make a fresh attempt to push the yellow metal back above the $1900 mark.
Market participants now look forward to the US economic docket – highlighting the release of Durable Goods Orders and Initial Weekly Jobless Claims – for a fresh impetus. This, along with the broader market risk sentiment, developments surrounding the coronavirus saga and US stimulus headlines, might produce some trading opportunities around the XAU/USD.
Technical levels to watch