Gold Price Forecast: XAU/USD unable to reclaim $2,000
XAU/USD Current price: $1,992
- During a quiet session, XAU/USD approached $2,000 and then pulled back.
- Gold Price is holding above a relevant short-term uptrend line.
- The Treasury market is set to reopen on Friday, and the US S&P PMI is due, but thin trading conditions are expected to prevail.
Gold Spot rose towards $2,000 during the Asian session, boosted by a weaker US Dollar, but later erased gains and moved back towards $1,990 on American hours. It was a quiet session with US markets closed, and thin trading conditions are expected to continue, favoring consolidation.
The yellow metal benefited from risk appetite and a decline in the US Dollar, but it was not enough for the price to reclaim the $2,000 area. The improvement in Eurozone PMIs supported risk appetite and weighed on the US Dollar, although the impact was limited due to low liquidity.
On Friday, the US market will have a shortened session, suggesting further consolidation is likely. The US S&P Global PMIs are due, but their impact could be limited. Positive news for the US economy could be harmful for Gold. The overall bullish bias remains for XAU/USD.
XAU/USD short-term technical outlook
-638363611047990005.png)
Gold Price remains near the $2,000 mark but has struggled to stay above that level. However, the critical level to watch is the $2,010 resistance, as a decisive break above it would clear the way for further gains. As long as the price remains below that level, rallies appear vulnerable.
On the 4-hour chart, the bias is bullish as XAU/USD continues to hold above an uptrend line, currently at $1,985. A break below this trend line could expose Gold to a significant correction, with a potential target around $1,975 and then $1,955. Technical indicators do not provide clear signs; the MACD shows a bearish bias, while Momentum and the Relative Strength Index (RSI) are flat.
Support levels: $1,985 $1,975 $1,955
Resistance levels: $2,000 $2,010 $2,023
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
