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Gold Steady Above 1,805 – Quick Intraday Outlook

Gold opened its day on Monday with a slight uptick and moved above the $1800 level amid a minor decline in the US Treasury yields.

Arslan Butt•Monday, December 27, 2021•2 min read
Gold - XAU/USD Chart
  • Gold was gaining strength from the rapid spread of the coronavirus.
  • China said its highest number of infections in four months despite the prevailing lockdown of Xi’an city.
  • Gold is trading choppy at 1,809 level facing strong resistance at 1,815 level. A bullish crossover above 1,815 levels exposes the metal towards 1,832.
Gold opened its day on Monday with a slight uptick and moved above the $1800 level amid a minor decline in the US Treasury yields. The market participants had not returned from holidays fully, keeping a subdued momentum throughout the market.

Gold Rate Live

XAU/USD

The US Dollar Index that measures the greenback’s value against a basket of half a dozen currencies from major economies was also moving in the upward direction but with less intensity and remained above 96.10 level. The US Treasury yields were under pressure and hovering around 1.48%, helping gold start its day in the green. No macroeconomic data will be released from the US on Monday. However, on Tuesday, the Housing Price Index and Richmond Manufacturing Index will be released, which could impact the US dollar.

Walter Reed Army Institute of Research Remarks

Last week, scientists from the Walter Reed Army Institute of Research said that they expect to announce the development of a vaccine that was effective against COVID-19 and all its variants, including Omicron and previous SARS-origin viruses that have killed millions of people. The vaccine was developed by working on the virus for two years. The vaccine has yet to undergo phase2 and phase 3 trials, and finding unvaccinated and un-infected people was hard, delaying its completion. However, if the vaccine proves to be effective against all variants, then the COVID-19 story will be left behind once for all. This optimism in the market pushed the risk appetite higher and kept gold’s gains limited for the session.

COVID-19 Concerns Keeping Gold Supported

On the other hand, GOLD was gaining strength from the rapid spread of the coronavirus. According to Johns Hopkins University, the global coronavirus caseload reached 279.9 M with 5.39M deaths and vaccination to over 8.94 B. Commercial airlines worldwide have canceled around 5,700 flights over the Christmas weekend as the spread of Omicron rose.

France reported its third day of record cases with a 100,000 daily count, and Portugal reported 10,000 daily instances of COVID-19. China recorded its highest number of infections in four months despite the prevailing lockdown of Xi’an city. The rising coronavirus cases and the government’s steps against it added uncertainty in the market that supported the precious metal on Monday morning.

Gold - XAU/USD Chart
Daily Technical Levels

Support Resistance
1806.65 1810.05
1805.10 1811.90
1803.25 1813.45
Pivot Point: 1808.50

Gold Technical Outlook – Upward Trendline Supports at $1801

Gold is trading choppy at 1,809 level facing strong resistance at 1,815 level. A bullish crossover above 1,815 levels exposes the metal towards 1,832. Since most of the markets are off on Monday, the precious metals are likely to exhibit thin trading volume and volatility. On the lower side, support stays at 1,801, and a break below 1,801 can lead XAU/USD to 1,792 and 1,779 levels. Good luck!
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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