Gold Price Analysis: XAU/USD struggles to keep Friday’s recovery above $1,850
Gold prices remain mostly choppy between $1,877.30 and $1,879.45 during the early Asian trading on Monday. The yellow metal refreshed October month’s low on Thursday before rising for the first time in two days on Friday. However, traders have turned cautious ahead of the key events as November begins.
Be it the worsening coronavirus (COVID-19) conditions or the delay in the US COVID-19 aid package, not to forget about the jitters ahead of the American presidential election, everything weighs the risks. The UK has been the latest European major to announce a national lockdown as cases grew 50,000 daily for the last few days and fears of double the death toll that the first wave mount.
Gold: Next week’s key macroeconomic events to keep an eye on
After starting the week above $1,900, gold lost its traction and dropped to a fresh monthly low of $1,860 on Thursday as the European Central Bank’s dovish tone and the risk-off environment boosted the demand for the USD. Although XAU/USD was able to stage a technical correction on Friday, it lost more than 1% on a weekly basis and closed at $1,879.
All eyes next week will be on the United States presidential election on November 3rd and the market volatility is expected to heighten with the outcome having a significant impact on market sentiment.