Gold Price Forecast: XAU/USD defies gravity and trades above $1,820.00
XAU/USD Current price: $1,822.59
- China's news boosted the optimistic mood, which weighed on the US Dollar.
- Wall Street trades mixed, while US government bond yields are rising.
- XAU/USD is technically bullish and poised to extend its gains.
Spot gold advanced at the beginning of the week, gapping higher amid US Dollar's broad weakness. The bright metal hit an intraday high of $1,811.60 during European trading hours, surpassing it after Wall Street's opening to post a fresh December high of $1,833.32 a troy ounce. Financial markets started the week in optimistic mode amid news from China indicating that the local government will focus on economic growth, further moving away from its zero-covid policy.
Meanwhile, a scarce macroeconomic calendar and low volumes ahead of the year-end holidays kept volumes low. Most Asian indexes closed the day in the green, while European ones also finished the day with modest gains. At the time being, Wall Street is mixed. The DJIA is up over 100 points, but the S&P500 and the Nasdaq Composite trades in the red. US Treasury yields are up, with the 10-year note currently yielding 3.82%.
XAU/USD price short-term technical outlook
XAU/USD trades at around $1,823 a troy ounce, retaining gains and poised to extend them. The daily chart shows that the pair keeps developing above all of its moving averages, with the 20 Simple Moving Average (SMA) extending its advance above the 200 SMA, in line with the dominant bullish trend. Technical indicators, in the meantime, picked up from around their midlines, offering firmly bullish upward slopes within positive levels.
In the near term, and according to the 4-hour chart, the risk is also skewed to the upside. Technical indicators head north almost vertically, although the Momentum stands at neutral levels, while the RSI is near overbought readings. At the same time, XAU/USD has accelerated north after meeting buyers around a flat 20 SMA, which remains above the longer ones. The mentioned 20 SMA is currently at around $1,805.00.
Support levels: 1,812.75 1,805.00 1,792.30
Resistance levels: 1,833.40, 1,845.20 1,864.65
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Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
