XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) witnessed high volatility on Monday, spiking to 1187.15 before rebounding to session lows at 1173.81. The pair failed to sustain at higher levels and gave back entire gains, ending the day lower at 1179. XAU/USD breached the 5-DMA support at 1176.60 yesterday after Greece concerns eased a bit as traders remained hopeful of a deal being reached ahead of the June 30 deadline.
XAU/USD extends its downside momentum and trades near lows at 1175.22 levels, facing rejection around 1180 levels. The pair remains pressured amid rebounding Asian equities and strengthening US dollar while Greek risks continue to linger. Looking ahead, we have a slew of US macro releases which may further boost the USD bulls, dragging the pair even lower.
The daily RSI at 43 has turned sharply lower suggesting more southward moves ahead. Hence, to the downside, the pair could drop to 1173.81 (June 29 Low), below which floors would open for a retest of crucial 1170 levels. Selling pressure is likely to intensify below the last, dragging the pair to 1168 levels. In case, we see negative developments surrounding Greece in the day ahead, gold prices may receive some support and rebound higher towards 10-DMA and 20-DMA confluence zone around 1182-1183 levels. Beyond which the pair may climb higher for a retest of 1187.15 (June 29 High) levels.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) finally broke its consolidation channel on Monday and jumped to fresh week highs at 1081.06 in Asian trades as the euro traded near monthly lows near 1.10 handle as Greek fiasco over the weekend weighed on EUR/USD, supporting XAU/EUR. However, all the gains were shaved-off later in the European session and the pair plunged nearly EUR 40 to 1046.80 lows on a reversal in EUR/USD, swinging back above 1.1200 on SNB intervention as well as on Greek hopes. However, XAU/EUR, managed to reclaim 1050 levels at close.
In today trade in running, XAU/EUR has posed a minor recovery, supported at 1050 – key levels. The pair trades in a narrow range, currently trading 1052.20 levels. The pair edged higher today as the euro came under renewed selling pressure, following the latest Greece updates with Greek once again rejecting the last-minute deal opportunity offered by European Commission. In the day ahead, Euro zone CPI print may provide fresh cues on the EUR/USD pair, eventually impacting XAU/EUR. While Greece headlines will also be closely watched.
Technically, XAU/EUR clings to 1050 support where 5-DMA, 10-DMA and 20-DMA converge. The daily RSI has turned flattish at near 45 indicating no clear direction as traders await for more incentives from Greece or upcoming EZ data. Hence, a break below 1050 levels, the pair could slip to 1045-1044 strong support zones, below which further downside is likely towards trend line support located at 1038 levels. To the upside, 1055 levels acts as strong upside barrier, which may limit further upmoves in XAU/EUR.
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
Editors’ Picks
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays firm above 156.00 after BoJ Governor Ueda's comments
USD/JPY stays firm above 156.00 after surging above this level on the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.