XAU/USD pair – Daily Chart
Gold prices in terms of US dollar (XAU/USD) halted its five-day decline and ended the week higher on Friday at 1175.40 levels, bouncing-off a brief dip below the trend line support of 1170 levels. The pair edged higher on Friday as the US dollar remained largely undermined by rising EUR/USD on hopes that Greek deal may be reached at Saturday’s extra-ordinary Euro group meeting. However, the upside in prices was restricted by 5-DMA barrier located around 1178 levels.
XAU/USD kicked-off the week on a stronger note, opening with a positive gap of nearly $ 10 at 1185.46 as failed talks between Greece and the Euro group over the weekend and Greek government calling in for a bailout referendum on July 5 sparked risk-aversion, boosting the demand of safe-haven assets such as gold. The pair climbed to 1187.15 – fresh four day highs earlier in Asia as traders digested news of capital controls imposed on Greek banks.
Technically, XAU/USD slipped below 10-DMA and 20-DMA confluence zone around 1183.50-1182.50 levels and now trades at 1178.40 levels. The pair remains supported above 5-DMA located at 1176.48, printing fresh lows at 1177.14. However, the daily RSI at 44 aims higher suggesting upward moves intact. Hence, the pair may regain lost momentum and swing back higher to retest the confluence around 1183.50-1182.50 zone. Beyond a break of last the pair may once again test daily highs at 1187.15. To the downside, a break below 5-DMA support, the pair could retest the strong trend line support at the 1170 levels. Overall, yellow metal is expected to remain supported amid ongoing Greek tensions with a likely Greek default expected ahead of tomorrow’s deadline.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) maintained its side trend on Friday, although settling the day in green at 1051.86, unable to sustain above 10-DMA located at 1052.80. The pair edged higher as the EUR/USD pair remained more or less in a range as Greece saga extended with no progress achieved on Thursday while markets awaited the outcome from Saturday’s Euro group meeting.
In today's trade in running, XAU/EUR faced rejection at 100-DMA located at 1081 levels and rebounded lower now trading at 1064.50 levels. However the pair manages to hold above 1060 = key levels. The pair jolted higher nearly EUR 30 at open mainly driven by a 150 pips slump in EUR/USD amid an unruly Greek debt situation developed over the weekend with Greek referendum and capital controls adding to pain in the shared currency. However, XAU/EUR gave back most gains following the latest news that hit wires, stating that Greek talks could restart soon. This gave a ray of hope to EUR bulls ahead of June 30 IMF repayment deadline, pushing XAU/EUR lower.
However, the pair likely to remain supported as the European currency is expected to remain pressured on Greece uncertainties. The daily RSI at 54 also points upwards suggesting upside bias intact. Hence, the pair is likely to climb back higher towards 100-DMA in the day ahead. Beyond which the pair may test 1088.69 (June 2 High) levels. While, the downside remains cushioned so long as to holds above the crucial 1060 levels.
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