XAU/USD outlook: Gold eases on Friday's profit taking, larger bulls hold grip
XAU/USD
Gold price eased in the US trading on Friday after hitting the levels just ticks under new record high ($2942, posted on Tuesday), but remains well supported and on track for the seventh consecutive weekly gain.
Friday’s partial profit-taking pushed the price lower, but dips are unlikely to go deeper as overall sentiment remains very bullish.
Investors are concerned about the new set of US reciprocal tariffs on every country that imposes taxes on US imports which could further fuel worries about an escalation of trade war and additionally boost already strong safe haven demand, also boosted by geopolitical tensions and elevated inflation.
Technical picture on daily chart remains bullish, with price adjustments expected on overbought conditions, following shallow and short-lasting pullback from new record high, seen earlier this week.
Violation $2900 support exposes rising 10DMA ($2878), Wednesday’s spike low ($2864) and Fibo 23.6% of $2583/$2942 rally ($2857).
Weekly close above $2900 to add to positive signals.
Res: 2921; 2942; 2946; 2983.
Sup: 2893; 2878; 2864; 2857.
Interested in XAU/USD technicals? Check out the key levels
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
