Gold spot prices struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1833 region.
- Gold spot managed to find decentsupport ahead of the $1800 mark and reversed an intraday dip.
- The prevalent cautious mood, weaker US bond yields extended some support to the metal.
- A goodish pickup in the USD demand kept a lid on any meaningful gains for the commodity.
Is this good time to buy gold?
The precious metal witnessed some selling during the early part of the trading action on Monday and dropped to one-and-half-month lows, albeit managed to find decentsupport ahead of the $1800 mark. The prevalent cautious mood extended some support to traditional safehaven assets and assisted the gold to attract some dip-buying.
Friday’s disappointing US Retail Sales added to growing market worries about the potential economic fallout from the continuous surge in new COVID-19 cases. The risk-off mood was evident from a weaker trading sentiment around the equity markets and reinforced by sliding US Treasury bond yields, which further benefitted the non-yielding yellow metal.
However, the emergence of some fresh US dollar buying kept a lid on any runaway rally for the dollar-denominated commodity, rather prompted some selling near 50-hour SMA. The mentioned barrier is pegged near the $1840 region, which should now act as a key pivotal point for short-term traders amid absent relevant market moving economic releases from the US.
From a technical perspective, sustained weakness below the very important 200-day SMA might have already set the stage for an extension of the recent downfall. That said, traders might still wait for a sustained weakness below the $1800 mark before confirming the bearish bias and positioning for any further depreciating move for the XAU/USD (gold).
What is highest price of gold in history?
Highest price for gold: Historical gold price action. Gold hit US$2,067.15, the highest price for gold at the time of this writing, on August 7, 2020. Gold’s breach of the significant US$2,000 price level in mid-2020 was undoubtedly due in large part to the result of economic uncertainty caused by the COVID-19.
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