XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) continued its upward trajectory and closed the week higher on Friday registering highest weekly gain so far this year. The pair tested fresh three month highs reached at 1227.20 on Thursday and bounced off highs at 1226.21 to end at 1223.87. XAU/USD extended its winning streak largely on the back of easing Fed rate hike bets following worse than expected US macro data released on Friday, dragging the USD lower across the board.
Currently, XAU/USD trades at 1230 levels, retreating from fresh three month highs reached at 1232.37 last hours. The pair edged higher despite a rebound in the greenback, as the European buyers ran through XAU/USD, spurring fresh buying interest. On the daily chart, the pair has surpassed all the major moving averages and remains firm eyeing next resistance at 1245 levels. The daily RSI at 64 aims higher, backing the case for further upside. Although, the pair may retrace on profit-taking given the recent strength and could drop to 200-DMA support located at 1216.88 levels on a break below daily lows of 1221.58. However, the downside looks limited and every dip should be viewed as good buying opportunity, eventually taking the pair higher to 1245 levels in the week ahead as traders gear up for FOMC minutes due to be published on Wednesday.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) closed slightly lower on Friday at 1068.36, holding above 5-DMA support at 1066.75 levels. The pair advanced to 1075.01 highs, although faced rejection at 20-DMA resistance located at 1078. The pair kept gains on Friday despite strengthening euro across the board as renewed hopes of a pushback in Fed rate lift-off to this year-end or early 2016 boosted the XAU bulls on all fronts.
Currently, the pair remains heavily bid and has finally managed to surpass 20-DMA resistance located at 1076.19 and printed fresh session highs at 1077.55. XAU/EUR remains lifted as the shared currency has turned lower across the board on a strong US dollar rebound after the recent weakness on downbeat US economic releases. The daily RSI at 48 aims higher and looks to breach the mid line and peek in to the positive territory. Hence, to the upside, the pair gain further momentum and edged higher for a test of 100-DMA located at 1084.50. The pair may advance to next resistance at 1087.47 (April 30 High) levels beyond a break of the last. Overall, a generalized intraday upside bias persists so long as the pair breaches the crucial support zone around 1166-1164.50 levels where the trend line support and 10-DMA lie.
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