XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) defended mild gains on Monday amid thin markets and closed the day almost flat with XAU bulls eyeing fresh impetus from the week ahead. The pair advanced to 1209 highs surpassing 5-DMA resistance placed at 1207.61, albeit failed to extend gains further amid underlying greenback strength backed by upbeat US CPI figures and Yellen’s comment. However, the pair remained supported above 1200 – psychological levels.
XAU/USD finally breached the crucial 1200 support today and now trades near lows around 1195 levels. The pair fell to fresh two-week lows in the early European trades and extends declines below 50-DMA support located at 1197.70 levels mainly driven by fresh USD buying as European traders returned to their desk after an extended holiday. In the day ahead, markets eagerly await US durable goods orders data which is expected to boost USD bulls further.
The daily RSI at 46.70 aims sharply lower and has crossed the midlines in to the bear range, indicating more room for declines. Moreover, the pair now stands below all the major moving averages. Hence, to the downside, XAU/USD may extend to the next support at 1191.26 (May 13 low) levels, below which a fresh sell-off is likely to trigger drowning the pair to the channel trend line support of 1182.20 levels. In case the US data misses expectations, we could see a minor recovery in gold prices back around 1200 levels.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) extended gains and closed higher on Monday, clinging to 1100 – key levels and displayed a symmetrical triangle bullish breakout on daily charts. The pair remained supported above 50-DMA barrier of 1093.27 and extended beyond to 1101.71 highs largely on broad euro weakness on Greek default fears re-emergence. While rising US dollar also kept the euro undermined, supporting XAU bulls.
At the moment, XAU/EUR seems to have snapped its 2-day rally and slipped back below 1100 levels, having reached fresh 4-week highs at 1102.75 levels. The pair gave back gains and trades lower near 1098 levels largely on the back of a generalized XAU weakness amid persistent US dollar strength ahead of crucial US macro data later today. The daily RSI at 57 aims lower and shows negative divergence suggesting further downside in the making. The 5-DMA and 50-DMA confluence at 1093.50 remains the crucial support for XAU/EUR, below which selling pressure may intensify pushing the pair to 100-DMA support placed at 1090.40 levels. A break below the last, the pair may drop to 1085 levels. The upside for the pair seems restricted with 1100 – psychological levels acting as a critical resistance.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) extended its side trend for a fifth day in a row and continued to consolidate in a pennant formation with the upside capped by 147k levels. The pair climbed higher on Monday largely as the yen weakened on the back of surging demand for the US dollar amid holiday-softened trades. The pair remained on the 146k handle and closed the day higher at 146,807 levels.
XAU/JPY swung between gains and losses today, with the pair giving a pennant bullish break and rising to fresh weekly highs at 147,116. However, the pair erased entire gains and fell in red as the XAU was broadly sold-off on renewed US dollar strength in anticipation of upbeat US durable goods orders data. The yen falling to lowest in 8 yrs versus the US dollar at 122.75 also failed to keep the XAU/JPY pair lifted. The daily RSI at 61 has turned lower backing the case for further weakness. To the downside, a break below 5-DMA support at 146,500 levels the pair could drop to 146,180 (May 25 Low) levels. However, the losses may remain capped amid generalized JPY weakness.
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
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.