Slobodan Drvenica
Windsor Brokers
XAU/USD
Gold price eases further on Friday, extending pullback from new record high $2222 (posted on Thursday) after a strong upside rejection on probe above psychological $2200 barrier.
The yellow metal came under increased pressure from stronger dollar after Fed kept the policy unchanged and signaled that high borrowing cost may stay elevated as the US economy is in good condition, which cooled talks about rate cuts from June.
However, the US central bank remains on track towards policy easing this year, which will continue to underpin gold price in the longer run.
Significant supports at $2146/41 (this week’s low / former record high of Dec 4) are exposed and should ideally contain and keep the price action within limited consolidation range, guarding lower pivot at $2131 (Fibo 38.2% of $1984/$2222, reinforced by rising 20DMA), where extended dips should find firm ground to mark a healthy correction of a larger rally from $1984).
Technical picture is mixed on daily chart as MA’s are in bullish setup, but momentum and RSI indicators are heading south after diverging from the price action in earlier sessions, which requires caution.
Res: 2186; 2200; 2222; 2250.
Sup: 2160; 2146; 2141; 2131.
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.