Gold Price Analysis: XAU/USD climbs to three-week tops, above $1,745 ahead of Powell

  • Sliding US bond yields undermined the USD and assisted gold to regain traction on Thursday.
  • Acceptance above 200-period SMA on the 4-hour chart supports prospects for further gains.
  • A sustained move beyond the $1,760-65 hurdle will confirm a bullish double-bottom breakout.

Gold held on to its intraday gains near three-week tops and is now looking to build on the momentum further beyond the $1,745-46 resistance zone.

A fresh leg down in the US Treasury bond yields undermined the US dollar, which, in turn, extended some support to the dollar-denominated commodity. That said, the underlying bullish sentiment kept a lid on any further gains for the safe-haven XAU/USD. Investors also seemed reluctant and preferred to wait for Fed Chair Jerome Powell's speech before placing any aggressive bets around the non-yielding yellow metal.

From a technical perspective, acceptance above 200-period SMA on the 4-hour chart supports prospects for an extension of the recent bounce from multi-month lows, around the $1,677-76 region, which constituted the formation of a bullish double-bottom. The constructive outlook is reinforced by the fact that oscillators on hourly charts have been gaining positive traction and just moved into the bullish territory on the daily chart.

Hence, a subsequent towards a previous strong support breakpoint, around the $1,760-65 region, looks a distinct possibility. Some follow-through buying will validate the double-bottom breakout and set the stage for additional gains. The XAU/USD might then accelerate the momentum towards an intermediate hurdle near the $1,782 region before eventually aiming back to reclaim the $1,800 round-figure mark.

On the flip side, the $1,735 level and the overnight swing lows, around the $1,730 region now seems to protect the immediate downside. This is closely followed by the $1,720 horizontal support. Failure to defend the mentioned support levels will negate any positive bias and turn the XAU/USD vulnerable to challenge the $1,700 mark. The downward trajectory could further get extended back towards challenging the $1,677-76 support zone.

Gold 4-hour chart


Technical levels to watch


Today last price 1747.48
Today Daily Change 9.68
Today Daily Change % 0.56
Today daily open 1737.8
Daily SMA20 1728.4
Daily SMA50 1764.06
Daily SMA100 1811.07
Daily SMA200 1858.97
Previous Daily High 1744.42
Previous Daily Low 1730.7
Previous Weekly High 1733.24
Previous Weekly Low 1677.98
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1735.94
Daily Fibonacci 61.8% 1739.18
Daily Pivot Point S1 1730.86
Daily Pivot Point S2 1723.92
Daily Pivot Point S3 1717.14
Daily Pivot Point R1 1744.58
Daily Pivot Point R2 1751.36
Daily Pivot Point R3 1758.3



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.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD slips below 1.2050 amid dollar strength

EUR/USD is trading below 1.2050, losing some of its gains as the dollar shrugs off the fresh drop in yields and rises. European regulators said the benefits of J&J's vaccine outweigh the risks.


GBP/USD retreats from 1.40 despite upbeat UK job figures

GBP/USD is extending its falls after retreating from 1.40 as the dollar edges higher. Earlier, the UK reported a drop in the unemployment rate to 4.9%, better than expected. The Claimant Count Change also beat estimates with 10.1K. 


XAU/USD tests key Fibo resistance at $1,775

XAU/USD rebounds after closing in the negative territory on Monday. 10-year US Treasury bond yield is edging lower on Tuesday. Additional gains are likely if gold manages to clear $1,775 resistance.

Gold News

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

Read more

S&P 500 (SPX) Update: Equity markets take a well deserved breather, crypto stocks slide

Equity markets took a much-needed break from setting record highs on Monday. Tesla suffered a steep 5% fall after reports of a crash with no one at the wheel. Have a Coke and a smile was up 1% as KO smashed earnings estimates.

Read more