U.S. stocks have come off the holiday weekend flat. At the midway point of the Wall Street session, the DJIA DOW (+89), S&P 500 SPX (+4), and NASDAQ (-17) are mixed. The sentiment is largely neutral as the equities trading week is finally underway. On the other hand, gold futures are off significantly, losing 1.46% on the day. 

This morning has brought another muted economic calendar, featuring only a few peripheral metrics. However, the NY Empire State Manufacturing Index (Feb.) did come in at 12.10, shattering the previous release (3.50) and expectations (6.00). This figure marks a 7-month high and suggests that manufacturing is on the uptick in New York.

In other news, there are fresh headlines surrounding the new COVID-19 variant B.1.1.7. Ominous quotes from Dr. Peter Hotez, Dean of the Baylor Medical School (Houston, Texas), sums up his concerns: “I worry we could reach a staggering death toll by the summer and fall.” In addition, there are numerous other coronavirus strains being found on both the east and west coasts. Although the markets are largely ignoring the “variant question,” these new strains have the potential to prompt new lockdowns and restrictions.

If the COVID-19 variants spike enough public concern, gold may be in a position to rally. Let’s dig into the bullion technicals and see where this market stands.

$1800.00 Is The New Key Area For Gold

At press time, GOLD futures are trading just beneath the $1800.00 handle. Sentiment is bearish as investors are non-committal toward bullion.

Overview: The chart above is a last look at February gold futures. Traders rolled to the April 2021 contract some time ago, which is also trading in the vicinity of 1800.0. However, the chart is useful in that it illustrates the sideways nature of bullion. Thus far in 2021, prices have entered consolidation; if gold breaks the 1780.0 support level, a swift run to 1700.0 may be in order.