Gold faces cloudy outlook near key support area

Gold tests key support trendline as sellers retain control.
Bearish bias needs confirmation below 3,285.

Christina Parthenidou XM

Gold has been on the backfoot so far this month, as diminished rate cut expectations and a risk-off mood have dominated market sentiment.

From a technical perspective, the decline appears to have further room to run. The RSI and MACD keep decelerating in the bearish territory, and with the RSI still above its 30 oversold level, a rebound may not be imminent in the coming sessions. Yet, optimism has not entirely faded, as the price is currently testing the support trendline drawn from late 2024.

If the floor at 3,285 gives way, the next potential pause could occur within the critical 3,250–3,265 area. A drop below that zone is expected to trigger a stronger bearish wave toward the 3,192–3,200 range.

In the event that upside pressures re-emerge, the bulls will aim for a close above the resistance trendline at 3,330. If they succeed, the price could quickly rebound to 3,355 and potentially gain momentum toward 3,390. Still, only a sustained move above 3,420 would significantly improve the outlook.

In summary, July’s pullback in the gold market may deepen in the short term, with confirmation likely to come below the 3,285 level.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.