Share:

XAU/USD Current price: $2,018

  • XAU/USD continues to decline from record highs despite declining US yields.
  • The US Dollar extends its gains and adds pressure to XAU/USD.
  • Economic data from the US shows mixed results; ADP data is scheduled for release on Wednesday.

The recovery in Gold spot during the Asian session proved short-lived as it resumed its decline, despite mixed US economic data and a decrease in US Treasury yields. This indicates that bearish pressure on the yellow metal remains intact.

Data from the US revealed that the number of job openings on the last business day of October was 8.7 million, down from 9.35 million in September, falling below the market expectation of 9.3 million. The ISM Services PMI surpassed expectations, rising to 52.7 in November compared to the expected 52. These data points suggest a more balanced labor market. Initially, this triggered a retreat in the Greenback, but it resumed its upward movement even as Treasury yields turned downwards.

The 10-year US bond yields dropped to 4.16%, reaching the lowest level since early September. Simultaneously, the US Dollar index reached multi-day highs above 104.00. The short-term bullish momentum remains in place for the Greenback, implying a negative outlook for Gold. On Wednesday, the focus will stay on US data, particularly the ADP Private Employment report, ahead of Thursday's Jobless Claims and Friday's Nonfarm Payrolls.

XAU/USD short-term technical outlook

Gold dropped to test the $2,010 support level, which has acted as a barrier to further downside. A break below this level would increase bearish pressure, exposing the $2,000 area and the 20-day Simple Moving Average at $1,995. The next target below is $1,985 and $,1975. 

The retreat from all-time highs has been significant, with the Gold price dropping by over $100. However, there still appears to be further downside potential, despite some technical indicators showing oversold readings. The momentum remains consistently bearish. Price stabilization could be observed if it remains above $2,010, with the initial resistance standing at $2,030. Bulls would need to see the price rise above $2,050 in order to signal a potential improvement in the short-term technical outlook. Expect elevated volatility to persist.

Support levels: $2,010 $1,985 $1,970

Resistance levels: $2,030 $2,045 $2,100

View Live Chart for XAU/USD  

Share: Feed news

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.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Majors

Cryptocurrencies

Signatures