Gold (XAU/USD) looks poised to retreat toward $1,875 as safe-haven flows provide a stronger boost to USD than the yellow metal, FXStreet’s Eren Sengezer reports.
Key quotes
“With US stimulus talks coming to a halt and Brexit negotiations set to continue for a few more weeks, coronavirus headlines, especially from Europe, are likely to impact risk sentiment next week and USD could continue to capitalize on flight-to-safety.”
“On the downside, the initial support aligns at $1,895 (20-day SMA) ahead of the key support that seems to have formed at $1,875 (Fibonacci 50% retracement of June-August uptrend/100-day SMA). A daily close below that level could open the door for further losses toward $1,848 (September 28 low).”
“Resistances are located at $1,920/25 (50-day SMA/Fibonacci 38.2% retracement), $1,950 (static resistance) and $1,980 (Fibonacci 23.6% retracement).”
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