XAU/USD pair – Daily Chart

XAUUSD

Gold prices in terms of US dollar (XAU/USD) extended its bearish momentum and tested the descending triangle trend line support at 1170 levels. The pair finally bounced-off lows and averted a bearish breakout, settling the day at 1175.51 levels. Gold prices tumbled to fresh two week lows as the US dollar was broadly boosted following the release of in line with estimates US final Q1 GDP data. While no show at Euro group meeting on Greece also kept the yellow metal in red.

As for today’s trade so far, XAU/USD extends minor recovery near 1176.50 levels as the US dollar gave back all of its previous gains and trades muted as traders anticipate a Greek solution to be struck at last at today’s Euro group meeting. This may keep the USD largely subdued on rising EUR/USD. Hence gold prices may receive some respite and extend higher to 1180.25 (June 24 High). A break above the last the pair may inch towards the confluence zone of 5-DMA and 20-DMA located around 1183.30-1183.90 levels. The daily RSI at 42.50 reversed downtrend and has turned higher suggesting recovery likely to be extended. However, in case the Fed’s inflation gauge and weekly jobless claims due later today tops estimates, then we could see a pullback gold, once again testing the key support at 1170 below which the pair could drop to 1161.29 (June 5 Low) levels.


XAU/EUR pair – Daily Chart

XAUEUR

Gold prices in terms of Euro (XAU/EUR) faced rejection at the strong 20-DMA resistance yet another time and rebounded lower to end Wednesday in red at 1048.98. The pair breached the 10-DMA support at 1051 levels and edged lower mainly driven by broad euro strength on Greek hopes. While generalized weakness in XAU cross also pressured the XAU/EUR pair.

XAU/EUR staged a mild rebound and trades higher around 1050 levels, with the upside challenged by 5-DMA and 10-DMA resistance zone near 1050.50-1051 levels. However, the recovery is expected to be short-lived as the European currency is expected to remain underpinned ahead of the Euro group meeting scheduled later today as markets expect a Greece deal to be finally struck. Hence the pair could reverse gains and fall back in red testing yesterday’s low at 1048.98 levels. A break below the last selling pressure may intensify dragging the pair 1045 support. However, to the upside, a break above 1051 levels, may expose upside risks towards 20-DMA critical resistance located at 1054.40 levels. Overall, it is expected that XAU/EUR may keep the familiar range below 1060 levels amid a data-empty European session ahead.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY flat-lines below 151.50 after soft Japanese CPI data

USD/JPY stays defensive below 151.50 after the release of a soft Japan's CPI report and mixed Industrial Production and Retail Sales data on Friday. Japanese verbal intervention also weighs on the pair amid the holiday-thinned conditions on Good Friday. US PCE inflation awaited. 

USD/JPY News

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD buyers lack vigor above 0.6500 amid Good Friday trading lull

AUD/USD is trading listlessly above 0.6500 in the Asian session amid light trading on Good Friday. The Aussie pair shrugs off encouraging comments from China's FX regulator, as price action remains subdued ahead of the US PCE inflation data. 

AUD/USD News

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold flirts with record highs above $2,230, all eyes on US PCE data

Gold price flirts with record highs around $2,230 during the Asian session on Friday. The uptick of yellow metal is bolstered by the safe-haven flows amidst growing economic concerns and the prospect of interest rate cuts from the US Federal Reserve.

Gold News

Ripple's move above this key level could trigger nearly 50% rally for XRP

Ripple's move above this key level could trigger nearly 50% rally for XRP

Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally. 

Read more

Will they won’t they cut rates is the question of Q2?

Will they won’t they cut rates is the question of Q2?

There has been some significant push back from Fed and Bank of England members around the timing of rate cuts, and the Bank of Japan still haven’t physically intervened in the FX market to stem yen weakness although they are threatening to do so.

Read more

Majors

Cryptocurrencies

Signatures