Gold Price Analysis — November 9

Gold (XAU/USD) traded on a sideways momentum in the early European session on Monday and was last spotted trading around the $1960 area.

The US dollar (DXY) remained in a depressed tone following the official announcement of Joe Biden as the President-elect of the suspense-filled US Presidential election. A weaker USD was cited as one of the major factors fostering demand for dollar-denominated commodities like gold.

Meanwhile, the prospects of a politically-split US Congress sparked speculations that the Fed would have to soften its stance to support the economy amid the rising risk of COVID-19 in the country. This, consequently, extended an extra boost to the non-yielding commodity.

However, the strong demand seen in the equity markets could thwart further demand for traditional safe-haven assets, including gold.

Regardless, the near-term bias remains strongly in favor of bulls and supports the possibility of additional gains. That said, any decline from this level could be considered as a dip-buying opportunity for traders and limit any significant downside in XAU/USD.

Given that there are no major market-moving releases today, market dynamics will be largely dictated by the broader market risk sentiment, as traders seek short-term trading opportunities.

Gold (XAU) Value Forecast — November 9

XAU/USD Major Bias: Sideways

Supply Levels: $1966, $1975, and $1983

Demand Levels: $1953, $1940, and $1923

XAU/USD has regained entry into our long-existing $1960 – $1983 pivot zone, depicting its newly-found bullish momentum.

Meanwhile, the commodity has recently hit the base of our ascending channel on our hourly chart. That said, we could expect a bounce to the $1983 level in the coming hours and days.

On the flip side, we could see a dip to the $1940 level before the surge upwards, where intense dip-buying will likely be seen.

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