XAU/USD Current price: $1,984.55
- Lower US Treasury yields boost the yellow metal following weaker-than-expected US data.
- XAU/USD breaks above $1,975 and the 20-day SMA.
- Gold has erased last week's losses and is now looking at $2,000.
Spot Gold rose significantly on Thursday, resuming the upside. XAU/USD broke above the $1,975 resistance area and jumped to the highest level in more than a week, boosted by a weaker US Dollar and falling Treasury yields. The price rose more than $20, also driven by technical factors.
The US weekly Jobless Claims report showed Initial Claims at the highest level in nearly three months, reaching 231,000, which is above the market expectation of 220,000. Continuing Claims reached 1.865 million, the highest in almost two years. Another report indicated a larger-than-expected contraction in Industrial Production during October. These figures weighed only modestly on the US Dollar but pushed US yields further down and triggered a jump in Gold.
As the data continues to solidify the position that the Federal Reserve (Fed) is done raising interest rates, Gold continues to shine, while the US Dollar remains under pressure. The question for the future is how high the weekly close will be for XAU/USD. The US data due on Friday is unlikely to be a game-changer. The focus remains on a volatile bond market and risk sentiment.
XAU/USD short-term technical outlook
-638357562680967524.png)
Gold broke above the 20-day Simple Moving Average (SMA) at $1,974 and the $1,975 resistance area, rising to $1,987, the highest level since November 6. As long as the price remains above $1,974, the focus will be on the next strong resistance area seen at $1,992. A break above this area would likely see the yellow metal rise above $2,000.
The 4-hour chart shows positive signs ahead of the Asian session, suggesting that the upward trend might continue. Immediate support stands now at $1,975, followed by the 100-SMA and then a key uptrend line at $1,964. A slide below the latter would indicate the end of the current rally, suggesting a potential initial decline to $1,950.
Support levels: $1,974 $1,962 $1,954
Resistance levels: $1,992 $2,001 $2,010
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 stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.