Gold Price Analysis: XAU/USD eases from multi-year tops, back around $1875 level


  • A combination of factors assisted the commodity to gain traction for the fifth straight session.
  • A modest USD rebound from lows prompted some profit-taking amid overbought conditions.

Gold surrendered a major part of its intraday gains to fresh multi-year tops and has now retreated back below the $1775 level. 

The precious metal prolonged its recent strong bullish trajectory and continued gaining traction for the fifth consecutive session. Concerns that the ever-increasing COVID-19 cases could delay the economic recovery and worsening US-China relations continued benefitted the commodity's perceived safe-haven status.

Diplomatic tensions between the world's two largest economies escalated further after the US ordered China to close its consulate in Houston by Friday amid accusations of spying. China's foreign ministry condemned the move as “political provocation” and was reportedly closing the US consulate in Wuhan in retaliation.

The yellow metal shot to the highest level since September 2011 but started losing momentum just ahead of the $1890 level. A sudden pickup in the US dollar demand –  though lacked any obvious catalyst – seemed to be the only factor that prompted some profit-taking amid extremely overstretched conditions on short-term charts.

That said, any meaningful pullback might still be seen as a buying opportunity and is more likely to remain limited. The impasse over the next round of the US fiscal stimulus measured might hold investors from placing any aggressive USD bulls and extend some support to the dollar-denominated commodity.

Technical levels to watch

XAU/USD

Overview
Today last price 1875.38
Today Daily Change 3.26
Today Daily Change % 0.17
Today daily open 1872.12
 
Trends
Daily SMA20 1798.17
Daily SMA50 1756.56
Daily SMA100 1703.64
Daily SMA200 1613.92
 
Levels
Previous Daily High 1872.16
Previous Daily Low 1840.66
Previous Weekly High 1815.1
Previous Weekly Low 1790.42
Previous Monthly High 1785.91
Previous Monthly Low 1670.76
Daily Fibonacci 38.2% 1860.13
Daily Fibonacci 61.8% 1852.69
Daily Pivot Point S1 1851.13
Daily Pivot Point S2 1830.15
Daily Pivot Point S3 1819.63
Daily Pivot Point R1 1882.63
Daily Pivot Point R2 1893.15
Daily Pivot Point R3 1914.13

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures