Gold Price Analysis — November 23

Gold (XAU/USD) traded on a directionless bias through the early trading hours on Monday and was last spotted trading close to the $1870 level.

The yellow metal has managed to stall any further declines despite its apparent bearish undertone thanks to the strong selling bias surrounding the US dollar.

The greenback came under heavy selling following speculations of additional stimulus measures by the Fed amid worries over the economic displacement due to the imposition of renewed COVID-19 restrictions across several states in the country. This development was the main factor preventing a sustained decline in the dollar-denominated commodity.

Meanwhile, the recent optimism over two potential vaccines and a treatment medication for the highly-contagious Coronavirus disease continues to bolster the global market risk mood. That said, the risk-on market bias undermined demand for risk-averse assets like gold in the meantime.

Moving on, market participants will be looking at the US economic docket today—which features the release of the flash version of the US Manufacturing and Services PMIs—for clues. Meanwhile, the most critical focus for this week will be on the FOMC meeting minutes scheduled for Wednesday.

Gold (XAU) Value Forecast — November 23

XAU/USD Major Bias: Bearish

Supply Levels: $1876, $1891, and $1900

Demand Levels: $1865, $1857, and $1849

Gold has remained in a fierce battle with the $1876 resistance for the fourth consecutive session now. A sustained break above this level should help the precious metal get back on track to the $1900 round figure. However, we might witness a prevalence of the bearish momentum for a while longer. A dip from this level will get strongly supported by the $1860 region.

Persistent selling from that level will get further supported by the $1849 support. A break below that level could be disastrous for gold.

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