Gold is looking to find its feet on Monday after wild swings witnessed on Friday, as the world was once again rattled by fresh concerns over a new covid variant detected in South Africa. The renewed virus concerns continue to underpin gold’s safe-haven appeal while markets reassess the Fed’s tightening expectations. Investors are likely to remain edgy amid choppy markets, as the latest covid updates and risk sentiment will continue to dominate. Concerns about the new COVID-19 variant weighed on market sentiment and is looking to affect monetary policy expectations. The restrictions announcements across Europe pushed equity and crude oil prices sharply to the downside.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

If the latter caves in, then the Fibonacci 61.8% one-day at $1,802 could get tested. Further up, gold bulls will need extra zest to take out the critical Fibonacci 38.2% one-week at $1,807.

The confluence of the SMA200 four-hour and pivot point one-day R1 at $1,809 will challenge the bearish commitments.

The next stop for gold bulls is seen around $1,816, where the previous week’s high, previous month’s high and pivot point one-month R1 merge.

On the flip side, the immediate downside seems guarded by a dense cluster of healthy support levels around $1,795.

At that point, the Fibonacci 23.6% one-week coincides with the SMA100 one-day, Fibonacci 38.2% one-day and SMA200 one-day.

The next demand area at $1,789, the Fibonacci 38.2% one-month, will come into play, below which floors will open up towards Friday’s low of $1,780.55. 

Initially, XAU/USD reacted to the upside, boosted by lower US yields. The rally was limited, and as of writing, it is retreating, affected by the global sell-off and a mixed US dollar. A firm recovery above $1810 could remove the negative tone in the short term; while a daily close under $1780 would suggest more losses ahead.

Gold is Supported by $1758 Price Action

Nov 29 2021