Gold Price Analysis: XAU/USD bulls fight back control as US-China row escalates, eyes $1740


  • Gold bulls extend control above 1730 levels.
  • Flight to safety amid escalation in US-China tensions boosts gold.
  • Gold on track for a weekly decline, despite hitting 7-year tops.

The recovery in Gold prices (XAU/USD) from Thursday’s troughs of 1717.34 regained traction above the 1730 mark in European trading, following a brief consolidative stint in Asia.

The fresh leg higher in the yellow metal is mainly driven by the European traders’ reaction to the escalation in the US-China tensions, in the face of Beijing taking ‘forceful measures’ on Hong Kong under the National Security bill.

The deepening concerns prompted a fresh flight to safety wave and lifted the ultimate safe-haven back on the 1730 barrier. The spot now trades with 0.44% gains at 1735.56, although remains on track to book a weekly loss.

The weekly decline could be likely associated with the increased expectations of a global economic upturn, as some countries relaxed lockdown restrictions. Meanwhile, the US dollar continued to draw the haven demand on the back of the US-China row and fading optimism over the anti-coronavirus vaccine that weighed heavily on the global stocks.

Looking ahead, the US dollar price action and risk trends will continue to influence the gold trades while the near-term sentiment around the metal will likely remain underpinned by the massive stimulus announced globally to combat the virus impact.

Gold: Technical levels to watch

With the renewed uptick, the next resistances are aligned at 1740 (round number), 1749.14 (May 21 high) and 1765.38 (7-year high). To the downside, immediate support is seen at 1716.31 (21-DMA). A break below which the 1700 mark will be tested.

Gold: Additional levels

XAU/USD

Overview
Today last price 1735.40
Today Daily Change 7.18
Today Daily Change % 0.42
Today daily open 1727.71
 
Trends
Daily SMA20 1715.38
Daily SMA50 1660.28
Daily SMA100 1624.37
Daily SMA200 1558.64
 
Levels
Previous Daily High 1749.14
Previous Daily Low 1717.34
Previous Weekly High 1751.8
Previous Weekly Low 1690.05
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1729.49
Daily Fibonacci 61.8% 1736.99
Daily Pivot Point S1 1713.65
Daily Pivot Point S2 1699.6
Daily Pivot Point S3 1681.85
Daily Pivot Point R1 1745.45
Daily Pivot Point R2 1763.2
Daily Pivot Point R3 1777.25

 

 

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