XAU/USD pair – Daily Charts
Gold prices in terms of US dollar (XAU/USD) ended the week lower on Friday at 1201.77, bouncing off lows under 1200 levels on diminishing safe-haven demand after Greece sought an interim four month extension for its debt repayment, avoiding a probable default. The pair trades now at 1203.09, supported above the crucial trend line support at 1200 levels. The pair may rebound on a short-covering rally after the recent weakness. The daily RSI at 37.67 levels has ticked up slightly indicating a likelihood of a brief reversal. However, the upside may remain capped by 5-DMA located at 1207.32 levels as renewed optimism and re-emergence of risk-on trades is likely to erode gold’s appeal as an alternative asset. A break above 5-DMA, the pair is likely to storm its way through and test 100-DMA placed at 1216.45 levels. To the downside, a break below 1200 levels, the pair may retest previous lows at 1198 levels. Further below that, selling pressure may intensify dragging the pair to test next support at 1182 levels.
XAU/EUR pair – Daily Chart
Gold prices in terms of Euro (XAU/EUR) ended lower on Friday at 1055.15 levels, breaking below 50-DMA located at 1052 levels with a low of 1049.99 levels. An interim deal sealed between the Greece and Euro group sent the Euro to fresh weekly highs, pushing XAU lower. At the moment, XAU/EUR trades in a tight band between 1055.45-1058.58 levels with a doji formation on daily chart. Hence, a break on either side may be expected, indicated by the daily RSI flattish at 42.86 levels. However, doji formation suggests a more likelihood of continuation of a bearish trend. The pair is expected to retest 50-DMA located at 1053.82 levels. A break below that level, XAU bears may take over knocking off the pair to retest previous lows and below to 1042 levels. To the upside, the pair may face immediate barrier at 5-DMA located at 1060 levels and the upside may remain restricted. Overall, a general intraday downside bias is likely to persist so long as the shared currency holds gains versus the US dollar.
XAU/JPY pair – Daily Chart
Gold prices in terms of Japanese yen (XAU/JPY) extended losses and finished lower on Friday at 142,969 levels. The pair now trades near highs at 143,263 levels and remains below 5-DMA located at 143,657. A bearish RSI at 36.61 further has turned higher suggesting a minor recovery possible for XAU/JPY. A break above 5-DMA, the pair may retest 144k levels as the yen is likely to remains lower versus the US dollar in the day ahead. A failure to breach 5-DMA, the pair may bounce-off to test daily lows at 142,988 levels. A fresh sell-off may be triggered below that level, drowning the pair to previous lows at 142,500 levels. An overall intraday upside bias holds as long as the pair sustains above 143k levels.
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