02.10 - Gold Price Analysis: XAU/USD on the path of least resistance
- by George Solotarov
Gold regains $1,900, currently around $1,908, following its almost $10.00 run-up during the pre-European session on Friday. The yellow metal recently surged after US President Donald Trump tested positive for the coronavirus (COVID-19). Following the test results, the White House physician Sean Conley said, as per the CNBC, the President “to continue carrying out his duties without disruption while recovering”. However, the risks slump after the announcement at the time when the US stimulus deadlock needed a strong push.
A small upside barrier around $1,915, including SMA 100 on the four-hour play, can quickly appear on the buyers’ radar before September 22 high near $1,920. Alternatively, a downside break below $1,904 will have to get validation from the sellers by breaking the $1,900 round-figures. In doing so, the $1,880-78 support area comprising the late-September high will gain the market attention.