XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended the week higher on Friday at 1213.16 levels, having breached 100-DMA located at 1216 levels. However, the pair failed to sustain above 100-DMA and finished below that level as the US dollar regained its lost ground across the board after US GDP data came in above markets expectations of a 2% reading, printing 2.2% in the fourth quarter. Gold prices retreated immediately after the release of upbeat US growth numbers which raised expectations of rate-hike sooner than expected.
Currently, the pair trades higher at 1221.23 and has given a symmetrical triangle breakout on daily chart. XAU/USD is strongly bid above 100-DMA located at 1215.88 levels and is set to retest daily highs at 1223.24 levels and beyond that 20-DMA placed at 1225 levels. The gains in the pair are likely to be accelerated above 20-DMA, pushing the pair higher to test 50-DMA located at 1232 levels. The daily bullish RSI at 47.29 levels seems to be inching towards the bullish territory, signalling further room for upside. Overall, a generalized intraday uptrend persists as the break out on the daily chart is expected to boost gold prices, despite a broadly higher US dollar. Moreover, the pair remains supported so long as the 100-DMA is breached.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finished near three week highs on Friday at 1082.71 levels, closing on weekly basis above 10-DMA located at 1081.72 levels. XAU/EUR pierced through 10-DMA and edged higher near three-week highs mainly driven by a tumbling EUR/USD after upbeat US macro data in the North American session on Friday dragged the shared currency to fresh monthly lows against the greenback.
Currently, the pair trades at 1092.21 levels, way higher above previous highs at 1088.54 levels. XAU bulls have taken total control and may push the pair to test crucial resistance at 1100 – psychological levels, above a break of daily highs at 1094.88 levels. The upside in the pair is also supported by a bullish daily RSI standing at 56 levels. A break above 1100 threshold, the pair may storm higher to test next resistance at 1107 levels. The downside in the pair seems limited as long as the pair holds above 10-DMA. Moreover, a weaker euro across the board ahead of a string of manufacturing PMI from the Euro area economies is expected to keep XAU/EUR buoyed.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) closed higher on Friday above 145k levels, breaking above crucial 20-DMA located at 145,783 levels as a weaker yen continued to boost XAU/JPY. The pair now trades higher at 146,280 levels, breaking above major resistance of 50-DMA located at 146,315 levels with daily highs posted at 146,609 levels. The pair extends its upside momentum, given a break above 146k levels, reaching fresh two-week highs. The daily RSI at 52 signals bullish bias, with the pair likely to retest daily highs and beyond that the pair may record fresh three week highs above 147k levels. To the downside, the pair may fall back to 20-DMA in case of a failure to breach day’s high levels. The pair is likely to remain underpinned and test higher levels on the back of persistent weakness in the yen amid broad based US dollar strength.
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