Gold Price Forecast: Optimism weighs on the greenback, December high at sight
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERXAU/USD Current price: $1,811.69
- US government bond yields ease as stocks rally following a long weekend.
- Omicron-related news provide a base for optimism despite record contagions.
- XAU/USD trades near its December high at 1,814.23, the immediate resistance level.
Gold trades at fresh one-week highs amid a better market mood putting pressure on the greenback. The American currency eases against most major rivals as Wall Street heads firmly north following the long Christmas weekend. Investors cheer news related to the coronavirus Omicron variant, as South African and UK health experts suggested that people with this strain is between 50% and 70% less likely to need hospitalization than those with Delta.
Still, there’s a lot of uncertainty over the developments of the pandemic. Countries in the northern hemisphere are reporting record cases on a daily basis, and thousands of flights are being cancelled due to the number of people isolated. Health systems are suffering from a similar situation, with doctors and nurses off duty.
Meanwhile, US government bond yields are down, reflecting the better market’s mood. The yield on the 10-year Treasury note is down to 1.47% after flirting with 1.50% ahead of the opening.
Gold price short-term technical outlook
The XAU/USD pair trades around $1,811, maintaining its bullish tone in the daily chart, although lacking momentum. The bright metal is developing above all of its moving averages, which are anyway directionless. At the same time, technical indicators hold flat within positive levels.
In the near term, and according to the 4-hour chart, the technical picture is quite alike. Gold is trading above its 200 SMA, where it has been these last few sessions, but without follow-through. The 20 SMA heads higher below it, while technical indicators remain within positive levels, although without directional strength. The immediate resistance is 1,814.23, the high set on December 17, with a break above it probably spurring a stronger advance.
Support levels: 1,803.00 1,791.80 1,782.10
Resistance levels: 1,814.20 1,822.90 1,832.75
XAU/USD Current price: $1,811.69
- US government bond yields ease as stocks rally following a long weekend.
- Omicron-related news provide a base for optimism despite record contagions.
- XAU/USD trades near its December high at 1,814.23, the immediate resistance level.
Gold trades at fresh one-week highs amid a better market mood putting pressure on the greenback. The American currency eases against most major rivals as Wall Street heads firmly north following the long Christmas weekend. Investors cheer news related to the coronavirus Omicron variant, as South African and UK health experts suggested that people with this strain is between 50% and 70% less likely to need hospitalization than those with Delta.
Still, there’s a lot of uncertainty over the developments of the pandemic. Countries in the northern hemisphere are reporting record cases on a daily basis, and thousands of flights are being cancelled due to the number of people isolated. Health systems are suffering from a similar situation, with doctors and nurses off duty.
Meanwhile, US government bond yields are down, reflecting the better market’s mood. The yield on the 10-year Treasury note is down to 1.47% after flirting with 1.50% ahead of the opening.
Gold price short-term technical outlook
The XAU/USD pair trades around $1,811, maintaining its bullish tone in the daily chart, although lacking momentum. The bright metal is developing above all of its moving averages, which are anyway directionless. At the same time, technical indicators hold flat within positive levels.
In the near term, and according to the 4-hour chart, the technical picture is quite alike. Gold is trading above its 200 SMA, where it has been these last few sessions, but without follow-through. The 20 SMA heads higher below it, while technical indicators remain within positive levels, although without directional strength. The immediate resistance is 1,814.23, the high set on December 17, with a break above it probably spurring a stronger advance.
Support levels: 1,803.00 1,791.80 1,782.10
Resistance levels: 1,814.20 1,822.90 1,832.75
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.