- Gold slips in the open and draws attention to below 1900.
- Coronavirus risks are weighing on market sentiment.
XAU/USD is open to start the week lower by some 0.10% despite a slide in the greenback on Friday by 0.20%.
The market is range bound and trendless with election and stimulus uncertainty whipsawing prices from day-to-day.
A second wave of the coronavirus gathering pace is also problematic for investor sentiment, although the recent news of an FDA approval for remdesivir gave a hint of positive news as do the prospects of the Johnson Johnson trials getting back on track.
European nations are reporting record numbers of new coronavirus cases as the continent prepares for the pandemic to intensify through winter.
The wave is forcing countries to impose ever-more social-distancing rules in a bid to avoid a return to full-blown lockdowns.
Spain has announced a national state of emergency and has imposed a night-time curfew in an effort to help control a new surge in infections.
In Italy, new restrictions were also announced over the weekend.
Balance to risks tilted to the upside
”Moving forward, with all eyes still firmly on the election, gold bugs need not look too far on the horizon for new fiscal stimulus, which keeps the balance of risks still firmly tilted to the upside in precious metals,” analysts at TD Securities argued.
”While, a potential Blue Wave fuels bullish gold expectations via a lower dollar, as more stimulus fuels a global reflationary wave, the upside could take longer to materialize as it also adds fuel to the bear steepening in the Treasury curve.”
Gold technical analysis
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The Chart of the Week: Gold under pressure below key counter trend-line
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