Gold Price Analysis: XAU/USD bulls earmark $1,975 bullish level

Gold prices could be due for a bullish retest of resistance.
XAU/USD has met a significant Fibonacci retracement level on the daily chart that is expected to hold.

Ross J Burland FXStreet

The monthly chart shows that the correction of the bullish trend met a 50% mean reversion before recovering into what would be expected to to be the start of a fresh bullish impulse that should exceed the record highs at some stage later this year.

Monthly chart

A 38.2% Fibonacci retracement of this current bullish leg's highs meets prior structure and would be expected to support the pullback from resistance.

Weekly chart

Meanwhile, the weekly chart's price rejection from a secondary resistance is leaving a wick that would be expected to be filled on the lower time frames.

Daily chart

Consequently, the daily chart's bearish correction of the overextended W-formation's impulse has stalled at a 61.8% Fibo.

This leaves a bullish bias towards a -0.272% Fibonacci of the correction's tops to current lows as a target.

Meanwhile, the price will very much depend on the US dollar's trajectory.

From a monthly perspective, the greenback is testing a demand area and the path of least resistance could well be to the upside at this juncture.

Therefore, the near term prospects for gold are limited to the upside while the US dollar corrects a significant portion of the monthly trend.

DXY monthly chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.