Gold: Path of least resistance is down amid a bearish technical view

Gold has stabilized around $1,880 after struggling last week but XAU/USD looks south as US election jitters buoy the dollar. Coronavirus updates and US ISM Manufacturing PMI are also in focus on Monday, FXStreet’s Dhwani Mehta reports.

Key quotes

“The greenback will continue to draw bids as jitters set in across the financial markets ahead of Tuesday’s election, with markets favoring the safe-harbor dollar. The outcome of the election will determine the extent of the likely fiscal stimulus aid, which will pave the way for the next direction in gold. In the meantime, the global coronavirus statistics and US ISM Manufacturing PMI be eyed for fresh trading impulse.”

“Acceptance below a cluster of healthy support levels around $1875 is needed to resume the downtrend towards the next critical cap at $1860. A technical breakdown on the chart will fuel the downside.”

“The upside attempts remain capped below the downward-sloping 100-HMA at $1887. A sustained break above the 100-HMA barrier could expose the falling trendline resistance at $1891. At the level, the 100-daily moving average (DMA) coincides.”