Gold Price Analysis: XAU/USD challenges 200-DMA on the road to recovery, Yellen eyed

Gold remains capped below 200-DMA while awaiting Yellen.
Bearish prospects are intact as RSI trades below the 50 level.
XAU/USD trades below all major averages on the 1D chart.

Dhwani Mehta FXStreet

Gold (XAU/USD) is struggling to extend Monday’s impressive bounce from seven-week lows of $1803, as the 200-daily moving average (DMA) appears to be a tough nut to crack for the bulls.

Investors await US Treasury Secretary nominee Janet Yellen’s testimony due later in the NA session for fresh direction.

In her prepared remarks, Yellen called on Congress to do more to fight a deep pandemic-induced recession. She said: “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big.”

Gold Price Chart: Daily

Acceptance above the 200-DMA hurdle is critical to extending the recovery moves towards the horizontal 50-DMA at $1860.

The next relevant upside barrier is aligned at $1876, which is the 21-DMA.

The upside moves appear limited by the key averages while the 14-day Relative Strength Index (RSI) remains in the bearish region.

To the downside, the rising trendline support at $1805 could be tested if the sellers regain control.

The multi-week lows of $1803 would be next on the bears’ radar, below which a test of the December 1 low at $1775.52 cannot be ruled.

Gold Additional levels

XAU/USD

Overview
Today last price	1838.42
Today Daily Change	1.29
Today Daily Change %	0.07
Today daily open	1837.13

Trends
Daily SMA20	1878.57
Daily SMA50	1860.66
Daily SMA100	1886.17
Daily SMA200	1844.76

Levels
Previous Daily High	1840.86
Previous Daily Low	1802.8
Previous Weekly High	1863.83
Previous Weekly Low	1816.96
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1826.32
Daily Fibonacci 61.8%	1817.34
Daily Pivot Point S1	1813
Daily Pivot Point S2	1788.87
Daily Pivot Point S3	1774.94
Daily Pivot Point R1	1851.06
Daily Pivot Point R2	1864.99
Daily Pivot Point R3	1889.12

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold retakes $4,300 amid modest USD pullback but hawkish Fed caps upside

Gold climbs back above the $4,300 mark heading into the European session on Thursday, though it remains within striking distance of a six-week low touched the previous day. The US Dollar eases after touching a fresh high since late July and offers some support to the commodity. However, the Fed's hawkish outlook, along with escalating Middle East tensions, should continue to underpin the safe-haven and cap the non-yielding bullion.

XRP and XLM rebound amid mixed signals

Ripple (XRP) and Stellar (XLM) extend their recovery at the time of writing on Thursday after finding support at key technical levels. However, mixed derivatives and on-chain data for both altcoins suggest that traders remain cautious and have yet to show strong conviction in a sustained rebound. Derivatives data shows a mixed and cautious outlook among traders.

BoE expected to hold interest rate at 3.75%

The Bank of England (BoE) is set to reveal its latest monetary policy decision on Thursday, coinciding with its sixth rate-setting meeting of 2026. Market analysts expect the central bank to keep its benchmark interest rate steady at 3.75%, which should be its sixth hold in a row following December’s 25-bps rate cut.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.