Gold Price Analysis — November 11

Gold (XAU/USD) has erased most of its gains from Monday’s trading session and was last spotted hovering above the $1876 support. It appears that the yellow metal has found mild demand at the $1876 support and is being supported by a combination of factors.

The frenzied market reaction to the positive development surrounding a COVID-19 vaccine has faded, following questions about the duration of its efficacy.

Additionally, concerns over the growing number of new COVID-19 cases in the US and the imposition of fresh lockdown restrictions across several states in the US have revived hopes for a substantial fiscal stimulus package to prop-up the economy. These recent developments have put US dollar (DXY) bulls on their backfoot and were seen as the major factors supporting the dollar-denominated commodity.

The USD was put under additional pressure by a weaker tone in the US Treasury bond yields. Regardless, the upbeat risk tone across the global markets has kept a strong cap on any significant gains in safe-haven assets, including gold.

Meanwhile, considering that US banks will be closed today to observe the Veterans Day holiday, volatility across markets could be sparse. This means that gold will likely remain in its consolidation range until a decisive break in either direction amid the absence of market-moving economic reports today.

Gold (XAU) Value Forecast — November 11

XAU/USD Major Bias: Sideways

Supply Levels: $1900, $1923, and $1940

Demand Levels: $1876, $1860, and $1849

Gold is currently trapped in a tight consolidation range between $1886 and $1876. Meanwhile, a wedge has been spotted on our 4-hour chart, which further strengthens the prospects of a spike in either direction. Currently, the XAU/USD is leaning slightly towards a bullish move, meaning the imminent surge could be to the upside.

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