Gold Price Forecast: Still depressed despite the better market mood
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: $1,782.71
- The market’s mood has improved, helping gold to trim most of its weekly losses.
- Stocks trade in the green while US Treasury yields ticked marginally higher.
- XAU/USD maintains its bearish stance in the near term could test November low.
Gold recovered on Wednesday alongside the market’s mood, currently trading in the $1,780 region. The bright metal advanced on easing demand for the American currency, as stocks turned green following Tuesday’s setback. The absence of first-tier events and relief news related to the coronavirus Omicron variant underpinned the sentiment. According to the World Health Organization, the current vaccines may protect from severe illness. Also, the WHO reported that so far, the new strain seems to be causing milder symptoms and illness. Caution around the issue is still high as a clear picture may come after a couple more weeks.
Meanwhile, government bond yields held ground, with the 10-year Treasury note yielding 1.47% at the time being. US Federal Reserve Chair Jerome Powell is giving his testimony about the CARES act before a different Senate Commission, repeating his Tuesday’s words.
Gold price short-term technical outlook
XAU/USD retains its bearish stance according to the daily chart. Sellers reject the advance once again around directionless and converging 100 and 200 SMAs, while technical indicators hold near their recent lows within negative levels, although losing their bearish strength.
The 4-hour chart shows that gold is at risk of falling. The metal remains below a mildly bearish 20 SMA, which remains below the longer ones, as technical indicators stand directionless below their midlines. The main support and possible bearish target is $1,758.81, November monthly low.
Support levels: 1,771.80 1,758.80 1,745.20
Resistance levels: 1,796.00 1,803.85 1,815.53
XAU/USD Current price: $1,782.71
- The market’s mood has improved, helping gold to trim most of its weekly losses.
- Stocks trade in the green while US Treasury yields ticked marginally higher.
- XAU/USD maintains its bearish stance in the near term could test November low.
Gold recovered on Wednesday alongside the market’s mood, currently trading in the $1,780 region. The bright metal advanced on easing demand for the American currency, as stocks turned green following Tuesday’s setback. The absence of first-tier events and relief news related to the coronavirus Omicron variant underpinned the sentiment. According to the World Health Organization, the current vaccines may protect from severe illness. Also, the WHO reported that so far, the new strain seems to be causing milder symptoms and illness. Caution around the issue is still high as a clear picture may come after a couple more weeks.
Meanwhile, government bond yields held ground, with the 10-year Treasury note yielding 1.47% at the time being. US Federal Reserve Chair Jerome Powell is giving his testimony about the CARES act before a different Senate Commission, repeating his Tuesday’s words.
Gold price short-term technical outlook
XAU/USD retains its bearish stance according to the daily chart. Sellers reject the advance once again around directionless and converging 100 and 200 SMAs, while technical indicators hold near their recent lows within negative levels, although losing their bearish strength.
The 4-hour chart shows that gold is at risk of falling. The metal remains below a mildly bearish 20 SMA, which remains below the longer ones, as technical indicators stand directionless below their midlines. The main support and possible bearish target is $1,758.81, November monthly low.
Support levels: 1,771.80 1,758.80 1,745.20
Resistance levels: 1,796.00 1,803.85 1,815.53
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.