XAU/USD Price Analysis — September 30

Gold (XAU/USD) etched lower through the early European session on Wednesday and was last spotted trading at the $1885 region.

The yellow metal was met with a fresh supply near the $1900 hurdle on Wednesday, which stalled this week’s bullish bounce from the $1849 support. The pullback represented the first bearish move in the past three days and was ignited by a goodish pickup in the US dollar (DXY) demand.

Meanwhile, the first US Presidential Debate between President Trump and Democratic opponent Joe Biden failed to rile the markets up, as many expected would happen. However, Trump’s assertion that the election result might not be agreed upon after Election Day has infused additional uncertainty into the markets. This comes amid the ever-increasing number of COVID-19 cases.

Other than a strong across-board recovery in the USD, an uptick in the US Treasury bond yields has added to the outflow of demand from the non-yielding commodity. Nonetheless, Trump’s comments in yesterday’s debate caused a fresh wave of global risk-aversion across markets.

Moving on, market participants will be looking at the US economic docket today—which features the ADP report, the final Q2 GDP report, Chicago PMI, and the Pending Home Sales data—for clues. Furthermore, influential comments from FOMC members later today will likely influence the greenback’s price dynamics in the North American session.

Gold (XAU) Value Forecast — September 30

XAU/USD Major Bias: Sideways

Supply Levels: $1900, $1923, and $1939

Demand Levels: $1876, $1849, and $1844

Technically, the XAU/USD has failed to break the strong $1900 psychological support. In the meantime, we expect a retest of that line, which could be very crucial to what gold does next. Meanwhile, over the past few hours, we’ve seen gold record consecutive lower highs, signaling that we could see the commodity hit the $1876 support before a retest of the $1900 line.

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