Gold Price Analysis: XAU/USD tracks mildly bid stock futures to recover below $1,800

• Gold struggles to extend the previous day’s recovery, picks up bids of late.
• S&P 500 Futures print mild gains, DXY fizzles the first run-up in thee days.
• Hopes of further easing of virus-led emergencies in the West jostle with virus woes in Asia.
• Pre-Fed caution keeps traders struggling for fresh clues.

Gold matches the tune of risk catalysts to reverse the early Asian losses ahead of Tuesday’s European session. Having initially dropped to $1,773.80, the yellow metal rises past $1,780 by the press time.

S&P 500 Futures rises 0.10% while the US dollar index (DXY) trim intraday gains as traders in the West analyze market sentiment. In doing so, the investors seem to highlight the hopes of a faster easing in the international travel, led by the UK, the EU and the US, as well as expectations that India will soon be okay, due to the latest international help.

On the contrary, challenges to US President Joe Biden’s $2.25 trillion infrastructure spending plan and mixed earnings from Tesla, as well as American Express, challenge the risk-on mood.

Above all, cautious sentiment ahead of Wednesday’s Federal Reserve monetary policy meeting and the key earnings scheduled for publishing during the week become the key to follow. While the Fed is likely to keep the cautious optimism on the table, also rejecting any near-term changes to the monetary policy, results from Alphabet, Facebook and Apple will be crucial for Wall Street.

Moving on, gold is likely to benefit from the US dollar declines and anticipated recovery in trading sentiment. However, any further worsening of the covid in Asia may propel the US dollar and drag the bright metal.

Technical analysis

Bullish MACD and the commodity’s ability to stay beyond the monthly support line, not to forget a crucial horizontal support area comprising multiple levels marked since February 19, direct gold buyers toward the $1,800 threshold.