Gold Price Analysis: XAU/USD climbs back above $1740 level, upside seems limited

  • Gold managed to gain some positive traction on Friday and erased the overnight losses.
  • Retreating US bond yields kept the USD bulls on the defensive and extended some support.
  • Bearish technical set-up warrants caution before positioning for any meaningful upside.

Gold edged higher in the last hour and refreshed daily tops, around the $1743-44 region heading into the European session.

Following an early dip to levels just below the $1730 level, the precious metal managed to regain some positive traction and has now recovered the previous day's modest losses. The prevalent cautious mood around the equity markets was seen as one of the key factors that extended some support to the safe-haven XAU/USD.

The overnight sell-off in the US fixed income market and a slump in crude oil prices took their toll on the global risk sentiment. This, in turn, forced investors to take refuge in traditional safe-haven assets, including gold. Apart from this, a subdued US dollar demand further benefitted the dollar-denominated commodity.

The USD bulls moved on the sidelines amid a modest pullback in the US Treasury bond yields, which provided an additional boost to the non-yielding yellow metal. That said, the optimistic outlook for the US economy might continue to underpin the greenback and keep a lid on any meaningful upside for the XAU/USD.

The Fed added to the narrative of a relatively faster US economic recovery and predicted a V-shaped recovery this year. Moreover, policymakers did not show any discomfort from the recent surge in long-term borrowing cost. This should act as a tailwind for the US bond yields and continue lending some support to the USD.

Even from a technical perspective, repeated failures near the $1760-65 horizontal support breakpoint, now turned resistance warrants caution before positioning for any further appreciating move. Hence, any subsequent positive move might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

Technical levels to watch


Today last price 1740.47
Today Daily Change 3.60
Today Daily Change % 0.21
Today daily open 1736.87
Daily SMA20 1738.81
Daily SMA50 1796.04
Daily SMA100 1832.8
Daily SMA200 1860.47
Previous Daily High 1755.59
Previous Daily Low 1719.3
Previous Weekly High 1739.93
Previous Weekly Low 1676.87
Previous Monthly High 1871.9
Previous Monthly Low 1717.24
Daily Fibonacci 38.2% 1733.16
Daily Fibonacci 61.8% 1741.73
Daily Pivot Point S1 1718.92
Daily Pivot Point S2 1700.96
Daily Pivot Point S3 1682.63
Daily Pivot Point R1 1755.21
Daily Pivot Point R2 1773.54
Daily Pivot Point R3 1791.5



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 extends slide on hawkish Powell comments, trades below 1.1250

EUR/USD extended its daily slide during FOMC Chairman Powell's press conference and fell to its lowest level in more than a month below 1.1250. Reflecting the renewed dollar strength, the US Dollar Index is up more than 0.5% on a daily basis at 96.50.


GBP/USD drops below 1.3500 on renewed dollar strength

GBP/USD lost its traction and fell into the negative territory below 1.3500. The greenback seems to be capitalizing on FOMC Chairman Jerome Powell's hawkish remarks, causing the pair to continue to edge lower. 


Gold bears sink their teeth into the market on hawkish Powell pivot

At $1,817.59, gold is moving towards the close and down some 1.65% after falling from a $1,850.11 high to test a low of $1,814.98. The drop came on the back of a hawkish twist at the Federal Reserve event on Wednesday.

Gold News

Cryptos to enjoy 20% upswing

BTC generated a significant amount of buying during the early NY trading session, pushing higher by more than 5%. Likewise, ETH has rallied over 24% from the weekly lows. XRP continues to lag BTC and ETH in performance, but a rally of its own is likely to develop very soon.

Read more

Tesla (TSLA) Q4 earnings beat but shares drop 6%

Tesla (TSLA) reported earnings for Q4 after the close on Wednesday. Earnings per share came in at $2.54 versus the average estimate of $2.26. Revenue was $17.72 billion versus estimates for $16.35 billion.

Read more