Gold Price Forecast: XAU/EUR downward move capped around crucial support at €1,567
|- XAU/EUR slumps almost 1%, following XAU/USD and XAG/USD footsteps.
- Worries about vaccine effectiveness on new COVID-19 strains, and Fed’s Chair Powell comments, spurred a flight to safe-haven assets, except for precious metals.
- XAU/EUR found strong support at June 1 swing high previous resistance-turned-support at €1,567.
Gold (XAU/EUR) versus the euro slides in the day, trading at €1,568 in the New York session at the time of writing. A risk-off market mood in the financial markets caused a flight to safe-haven assets. In the case of the XAU/EUR spot, the shared currency has the upper hand, advancing 0.83% against the non-yielding metal.
Comments of a pharmaceutical company CEO regarding vaccine effectiveness against new coronavirus strains dented the market sentiment along with hawkish comments made by Federal Reserve Chair Jerome Powell that favors the greenback, to the detriment of precious metals.
That said, XAU/USD is falling 0.55% in the precious metal segment, while silver (XAG/USD) slumps 0.08% during the day.
XAU/EUR Price Forecast: Technical outlook
The XAU/EUR daily chart depicts gold’s upward bias, as long as the daily moving averages (DMA’s) with an upslope reside below the spot price. Furthermore, it is essential to notice that at press time, the June 1 swing high previous resistance-turned-support price level at €1,567, that if it is broken, it will expose the November 3 cycle low at €1,519 by a test of the 200-DMA at €1,515.
On the flip side, if the June 1 support at €1,567 holds, that would help gold bulls push the price towards higher readings, with the €1,600 figure being the first resistance area. A breach of the latter would expose crucial supply zones, like November 18 low previous support-turned-resistance at €1,632, followed by the YTD high at €1,654.
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