Gold Price Analysis: Recaptures $1,700 and surpasses three technical hurdles, levels to watch

Yohay Elam FXStreet

Gold has recaptured the $1,700 mark after trading below that level for several days. The market mood is mixed after a down day on Tuesday, with stocks recovering after falling alongside oil prices. The precious metal has risen amid the coronavirus crisis, but it is far from being a one-way street.

On its way up, XAU/USD has achieved three technical feats on the four-hour chart.

The first is that momentum turned positive for the first time in nearly a week. The second is that gold popped past the previous daily weekly high set on Monday, setting a higher high. And finally, the precious metal surpassed the 50 Simple Moving Average, completing the trio of the 50, 100, and 200 SMAs.

The fresh high of $1,706 is immediate resistance. It is followed by $1,726, which held the pair down when it traded on higher ground. Finally, the seven-year peak of $1,742 awaits XAU/USD.

Support is at $1,680, which provided support last week, followed by $1,640, a support line from early April, and finally, $1,620, which is where the 200 SMA hits the price.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.