Gold Price Analysis: XAU/USD keeps bounce off three-week low beyond $1,900

• Gold prices pullback from $1,907 to mark the second recovery wave from $1,863.24.
• US policymakers fail to push stimulus talks, trade jitters continue.
• US President Trump says to forgive payroll taxes after the election.
• Risk factors remain in focus amid a light calendar.

Gold prices stay positive around $1,920 during the early Thursday morning in Asia. The bullion dropped to the lowest since July 23 before bouncing off $1,863.24 the previous day. While carrying forward its recovery moves, the precious metal keeps a $1,900 mark amid mixed catalysts.

The US keeps the focus…

Be it the American stimulus deadlock or recent verbal attacks on Europe, not to forget upbeat promises from President Donald Trump, the US remains in the market focus. Even so, trading sentiment seems to have paused the previous upbeat performance as the US Trade Representative (USTR) Robert Lighthizer increases levies on France and Germany while cutting the same on Greece and the UK. Also challenging the risk-tone sentiment is comments from the US Treasury Secretary Steve Mnuchin suggesting further hardships for Senate negotiations concerning the much-needed stimulus.

Even so, US President Donald Trump tries to play his role as an optimist while saying that economic performance is significantly better than Europe. The Republican leader also showed readiness to cut payroll taxes after the November month elections. Also on the positive side is the President and CEO of the Federal Reserve Bank of Dallas Robert Steven Kaplan who pushed the government for further unemployment benefits while ruling out the need for lockdowns.

Amid all these catalysts, S&P 500 Futures take rounds to 3,370 while keeping the previous day’s run-up. Wall Street closed notably positive whereas the US 10-year Treasury yields also rose on Wednesday. The reason could be traced from the upbeat US Consumer Price Index (CPI) and no major negatives from the US-China tussle frontier.

Looking forward, traders will keep eyes on the risk catalysts like US aid package, coronavirus (COVID-19) updates and Sino-American news for fresh impetus. Given the recently mixed headlines, gold buyers may turn cautious.

Technical analysis

Despite bouncing off 50-day EMA near $1,860, gold prices are yet to regain their stand past-21-day EMA level of $1,935, which in turn suggests the bulls to not hurry while opening fresh positions.