Gold’s Daily Price Analysis
Gold prices remained stable on Monday as increased US Treasury yields countered safe-haven purchasing due to an Omicron-driven increase in COVID-19 infections worldwide. By 0058 GMT, spot gold was mainly constant at $1,830.09 per ounce after touching a more than one-month high of $1,831.49 earlier in the day.
The Omicron coronavirus variety hampered New Year's Eve celebrations worldwide, with Paris cancelling its fireworks display, London relegating its television, and New York City reducing its famed Times Square ball drop event. The Omicron coronavirus variety hampered New Year's Eve celebrations worldwide, with Paris cancelling its fireworks display, London relegating its television, and New York City reducing its famed Times Square ball drop event.
A year ago, a newly available vaccination offered hope that the COVID-19 pandemic could be contained by the beginning of 2022. Instead, the unexpected introduction of Omicron has led to an increase in coronavirus cases worldwide. According to Reuters data, worldwide infections reached a seven-day high, with an average of just over a million cases recorded every day between Dec. 24 and Dec. 30, up 100,000 from the previous peak on Wednesday.
On the other hand, deaths have not increased in proportion, raising hopes that the new variety is less dangerous. New York City claimed a historic 44,000 infections on Wednesday and another 43,000 on Thursday, prompting some critics to wonder whether the festivities should even take place.
At midnight, the lit ball composed of Waterford crystal panels descended its pole in Times Square, although only 15,000 viewers were allowed into the official viewing area, less than the normal 58,000. On Sunday, over 4,000 flights were cancelled around the world, with more than half of them being in the United States, adding to the toll of holiday week travel difficulties caused by bad weather and a surge in coronavirus cases caused by the Omicron variant.
According to flight-tracking website FlightAware.com, nearly 2,400 flights entering, departing from, or within the United States had been cancelled by 8 p.m. GMT on Sunday. Over 11,200 flights were delayed worldwide. The Christmas and New Year's holidays are traditionally busiest for air travel, but the quick spread of the highly transmissible Omicron form has resulted in a dramatic surge in COVID-19 infections, prompting airlines to cancel flights while pilots and cabin personnel are quarantined.
GOLD Intraday Technical Level
Pivot Point: 1824.47
GOLD - Technical Outlook
Gold is trading sharply bullish at 1,824, exhibiting a bearish correction after testing the 1,830 resistance. On the 4-hourly chart, the XAU/USD coin is gaining immediate support at 1,824, which is being extended by an intraday pivot point level. The closing of candles above this supports an uptrend in gold; on the higher side, the significant resistance stays at 1,834 and 1,840. A bullish break above this exposes the metal toward the 1,850 mark.
Conversely, the break below the 1,824 level of 1,824 exposes the XAU/USD toward the 1,818 or 1,808 support zone. Further on the lower side, the next support level prevails at the 1,802 level. Bullish bias seems to dominate over 1,824 and vice versa. All the best!
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