XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended higher on Thursday above 1200 marker at 1203.30 levels, reaching fresh three week high at 1219.76 levels. The pair however, failed to breach 50-DMA resistance located at 1221.68 and bounced-off highs just below the upside barrier. XAU/USD pierced through USD 1200 levels and extended gains further mainly driven by risk-off sentiments after news hit the wires of Saudi Arabia’s initiation of military operations against Yemen. The escalating geo political tensions raised the demand for gold as a safe-haven asset. However, the gains were restricted and the yellow metal retreated from three week highs and settled just ahead of 1200 as the US dollar regained strength and climbed higher on better than expected US employment and services sector data, dragging the pair lower.
The pair, currently, trades in a slim range at 1202.70 levels, consolidating previous gains above 1200 levels. XAU/USD drifted slightly today as traders booking profits after the recent rally and now awaits US GDP data for further direction on the pair. XAU/USD has formed a doji on the daily chart indicating lack of clear direction, with the daily RSI also turned flattish at 56.80 levels. To the upside, the pair may climb from current levels and retest 100-DMA located at 1210 levels and beyond that 50-DMA placed at 1220 levels. To the downside, the pair may fall from current levels and test 5-DMA at 1196.56 levels below a break of crucial 1200 barrier. However, losses in XAU/USD may remain limited as its widely expected that US CPI data is likely to disappoint markets, dragging USD lower.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) continues its bullish tone in an upside short term channel, with pair finally rising above 1100 psychological levels and closing above that level at 1105 levels on Thursday. The pair broke above the 50-DMA resistance located at 1093.91 levels and shot its way through 1100 levels after the euro weakened versus the USD on upbeat US macro data, lifting the pair higher. The bounced-off the trend line support and rallied to fresh 7-week highs at 1109.71 in the previous session also on increased safe-haven bids for gold amid looming geopolitical tensions.
Currently, the pair trades almost flat at 1105.71 levels, managing to hold gains above previous close as the pair takes cues from a muted EUR/USD ahead of US growth numbers later in the day. The pair trades in a tight band locked between 1103-1107 levels. With the daily RSI flat at 58 levels, pair may seems to trade directionless. The upside may remain capped by previous highs at 1109.71 levels. However, a break above 1109.71 the pair may edge higher to test the next barrier at the trend line resistance of 1119 levels. To the downside, if the pair fails to sustain above daily lows of 1103.30 levels, XAU bears may take over and drown the pair to 50-DMA located at 1094.27 levels, where the pair seek a strong support. Overall, the direction for XAU/EUR will take shape only on the US data release as the EUR calendar remains powder dry for the day.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) broke above the narrow channel on Thursday, reaching fresh three week highs at 1444,564 levels before ending the day lifted at 143,422 levels. The pair settled the day well above the crucial 5-DMA support located at 142,651. The gold prices in terms of yen traded higher all through the day in the previous session as safe-haven appeal in gold boosted XAU/JPY on the back of Saudi’s military operations on Yemen, despite broad based JPY strength.
The pair now trades near highs at 143,600 levels, bouncing off day’s low around 143,100 levels as the yen weakened across the board on the released of mixed Japanese macro data where the country job’s data beat estimates but CPI, retail sales data disappointed markets. The daily RSI at 54 aims higher suggest further room for upside. To the upside, the pair faces stiff barrier at 100-DMA located at 143,821 levels and may test previous highs at 144, 564 beyond a break of 100-DMA. To the downside, the pair remains well supported above 5-DMA at 143k levels. A break below that level, the pair may fall to next support at previous lows around 142,500. Overall, XAU/JPY is expected to trade higher 144k levels as the yen is likely to outperform the greenback on increased safe-haven bids and amid a broad USD weakness.
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