Gold Price Analysis: Gold ends the week on an indecisive note at USD 1616.50


  • Gold trades just 0.19% higher on Friday despite poor data from the US.
  • The price has stalled ahead of a key trendline shown on the chart below.

Fundamental backdrop

The jobs market in the US is in a state of chaos at the moment with another record print for weekly jobless claims and a record matching 701K non-farm payroll number this afternoon. It has to be said the data was for March but missed out the last two weeks of initial jobless claims due to the cut off period. This means that the true numbers may be reflected in next months reading. 

There is still a massive amount of central bank and government stimulus around. Germany are increasing support for small to medium-size business but are yet to finalise arrangements with some reports suggesting the figure could be as high as EUR 500 billion. 

In terms of COVID-19 news, the rate of change in Italy and Spain seems to be slowing as the world passes the 1million mark. The US has surpassed 200 thousand cases to become the worlds worst affected nation. What is interesting is the fact that and Larry Kudlow (Director of the United States National Economic Council) said that the US would not reopen until the US are satisfied on the health side. 

Technical picture (4-hour and weekly chart)

The chart below is showing that the gold price is attempting to break the red trendline on the chart. this level seems significant but not as significant as the USD 1644.54 per ounce wave high marked by the blue line. A break of these two levels will tell us lots about the macro environment and how badly investors are rushing for safe-haven assets. There are many plus points for the precious metal as it continues to trade above the moving averages on the 4-hour, daily and weekly charts. The RSI is also above the 50 mid-line on all of these timeframes too. 

For next week the blue and the black support and resistance zones will be key. In these times of economic uncertainty, the blue level at USD 1644.54 is the more important one. If this breaks then we could look forward to the test of the USD 1700 zone. 

Gold breaking trendline

Weekly chart

The weekly chart illustrates the highs and consolidation zone we are currently in. The red line is the next key area that could be tested close to USD 1800. Under that, USD 1533.00 is the support zone but the 4-hour chart shows USD 1500 has already been rejected. These are much longer term level but just need to be looked at from time to time for reference purposes.

Gold weekly test of highs

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Portrays bearish set-up on D1 below 1.1900

EUR/USD edges lower around 1.1870 amid a quiet start to the week’s Asian session trading on Monday. The major currency pair snapped a four-day uptrend on Friday, posting the bearish spinning top candlestick.

EUR/USD News

GBP/USD: Bears brace for 200-SMA retest

GBP/USD begins the trading week on lower ground near 1.3900. The cable pair broke a short-term rising channel during the late Friday and teased bears amid a downward sloping Momentum line. The selling currently aims to retest the 200-SMA support near 1.3835, a break of which could highlight the 1.3770 area comprising multiple levels marked last week.

GBP/USD News

EUR/USD: Portrays bearish set-up on D1 below 1.1900

EUR/USD edges lower around 1.1870 amid a quiet start to the week’s Asian session trading on Monday. The major currency pair snapped a four-day uptrend on Friday, posting the bearish spinning top candlestick.

EUR/USD News

Tide turning in favor of SHIB bulls, as $0.00000750 beckons

Amid an upbeat momentum seen across the crypto board, Shiba Inu is taking inspiration on Sunday, as it looks to extend Saturday’s upswing from near the $0.00000590 support area. SHIB bulls await acceptance above 21-DMA to unleash further upside towards 50-DMA.

Read more

Challenging week ahead

Three macro considerations are shaping the investment climate: the evolution of the virus and the response, the timeframe of the Fed's tapering, and China's broad regulatory crackdown. Beijing's new policy initiatives are broader and quicker than generally anticipated.

Read more

Forex MAJORS

Cryptocurrencies

Signatures