XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) ended lower on Tuesday at 1183.68 levels, bouncing off a good support at 20-DMA located at 1177.69. The pair extended its losses in to the third straight session largely on persistent US dollar strength across the board following recent series of upbeat US macro data including the latest better than forecasts US consumer confidence figures. Besides, a generalized risk-on mood prevailed in the markets yesterday which dulled the appeal of gold as a safe-haven.
The pair, currently trades higher around 1187 levels, snapping its 3-day run of declines. However, the upside remains capped by 10-DMA barrier at 1189 levels. The pair seems to consolidate previous losses and has edged higher given the broad USD weakness on profit-taking following the recent upsurge. The daily RSI at 47.98 heads higher towards the bullish terrain suggests further extension of the recovery mode. A break above the 10-DMA resistance, the pair may extend to 5-DMA located at 1191.70 levels. A breach of 5-DMA coupled with a daily closing above that level is expected to confirm a bullish momentum in XAU/USD. To the downside, XAU/USD may fall from current levels and test daily lows at 1183.70. A fresh sell-off may trigger below a break of 1183.70 which may drag lower for a retest of 20-DMA support located at 1176.62.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) extended its sideways movement in a short term upside channel and ended higher on Tuesday at 1102.07 levels, well above 1100 – psychological barrier. The pair advanced to highs at 1107.94, however failed to breach March 27 Highs at 1110.65 levels and bounced-off that level to end just ahead of 1100 mark. XAU/EUR regained lost ground and remained elevated all through the day largely on a massive sell-off seen in EUR/USD as the US dollar continued to extend its bullish tone.
Currently, the pair trades lifted at 1102.20 levels, having bounced-off day’s high at 1103.82 levels. The pair continues to trade in a bearish flag channel and bounces-off every dip on the trend line support. XAU/EUR seems supported on 5-DMA located at 1100.93 levels and has formed a doji on the daily chart along with a flattish RSI at 56 levels indicating lack of clear direction for the pair ahead of a raft of Eurozone PMI and UK PMI readings which may a set a clear tone for XAU/EUR. To the upside, the pair may retest previous high at 1107.94 as the weakness in EUR is expected to support the XAU/EUR. A break above that level, XAU bulls may take over, leading the pair to test March 27 highs at 1110.65 levels. To the downside, the pair may fall from current levels and test 5-DMA support below which selling pressure is likely to intensify dragging the pair to test the trend line support at 1093.85.
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 clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.