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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD chops around amid end-of-month flows, ahead of Trump

EUR/USD is battling 1.11, close to the two-month highs amid choppy trading. Hopes for a fiscal boost in Europe and mixed satisfactory data have supported the currency pair. , Sino-American tensions are rising and investors await President Trump's China announcement.

EUR/USD News

GBP/USD advances amid US dollar weakness, shrugging off concerns

GBP/USD is trading above 1.23, edging higher amid US dollar weakness and Britain's gradual reopening. Intensifying Sino-American tensions and the Brexit impasse are ignored. 

GBP/USD News

Cryptocurrencies: $348M in matured derivatives boost the market

Futures and options contracts' expiration brings a wave of volatility to the crypto market. Ethereum takes advantage and attacks resistances in the market dominance chart, Bitcoin goes back. Ripple disappoints despite regaining the third place in market capitalization.

Read more

Canada's economy falls by 8.2% annualized in Q1, better than expected, USD/CAD shakes

The Canadian economy squeezed by an annualized rate of 8.2% in the first quarter of 2020, better than -10% expected. Quarterly, Gross Domestic Product (GDP) squeezed by 2.1%. Most of the downfall occurred in March, with a drop of 7.2%, better than 8.5% projected. 

Read more

WTI drops 4% and eyes $32 mark amid risk-off, weakening demand

The selling pressure around WTI (July futures on Nymex) accelerates following the break below the 33 level, as bears now target the 32 support zone heading into the key US macro data and US President Donald Trump’s response to the Hong Kong issue.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures