Gold Price Forecast: XAU/USD likely to face stiff resistance near $1795-$1800, focus on yields

Gold extends gains towards $1800 as Treasury yields ease.
Growing covid concerns weigh on stocks, yields.
Rising wedge on the 4H chart points to stiff resistance around $1797.

Dhwani Mehta FXStreet

Gold (XAU/USD) rebounded on Tuesday as the US Treasury yields tumbled alongside global stocks. Surging covid infections globally brought a reality check into the markets and triggered a fresh risk-aversion wave. The US dollar recovered from seven-week troughs amid resurgent haven demand. Although gold traders ignored the dollar bounce back, as the dynamics in the yields continued to have a significant bearing on the yieldless gold. Dovish comments from Fed Chair Powell also aided the upside in gold. The US central bank chief said that they remain fully committed to both legs of the dual mandate.

Looking ahead, the US rates could resume their decline should the risk-off mood worsen, benefiting gold further. The relentless rise in the covid cases threatenS to derail the global economic recovery, which unnerves the investors. Amid a lack of relevant economic data, gold will continue to follow the yields for fresh directives.

Gold Price Chart - Technical outlook

Gold: Four-hour chart

As observed on the four-hourly chart, gold remains on track to test the rising wedge hurdle at $1797 en-route $1800.

The price has managed to hold above the 21-simple moving average (SMA) at $1775, with the bullish Relative Strength Index (RSI) pointing towards extra gains.

Further up, the horizontal 100-day SMA at $1804 could be probed.

Alternatively, a four-hourly candlestick close below the 21-SMA will recall the sellers.

The confluence of the wedge support and 50-SMA at $1757 could emerge as strong support.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.