Gold Price Analysis: XAU/USD clings to modest recovery gains, bearish bias remains

  • Gold staged a modest recovery from the vicinity of the very important 200-day SMA.
  • The near-term technical set-up still seems tilted firmly in favour of bearish traders.
  • The attempted recovery could be seen as a selling opportunity and remain capped.

Gold found decent support just ahead of the very important 200-day SMA, near the $1800 mark and staged a modest bounce on Wednesday. The precious metal was last seen trading with modest gains near the $1810, up around 0.26% for the day.

A modest pullback in the US equity futures turned out to be a key factor that prompted some short-covering near a technically significant moving average. That said, the near-term bias remains tilted firmly in favour of bearish traders.

The XAU/USD on Tuesday broke through a horizontal support near the $1850-48 region. A subsequent fall below the 38.2% Fibonacci level of the $1451-$2075 positive move and descending channel support confirmed a fresh bearish breakdown.

Meanwhile, technical indicators on the daily chart maintained their bearish bias and are still far from being in the oversold territory. This further adds credence to the negative outlook and supports prospects for additional weakness.

However, it will be prudent to wait for some follow-through selling below the $1795 region (200-DMA) before positioning for any further depreciating move. The yellow metal might then accelerate the slide towards 50% Fibo. level, around the $1760 region.

On the flip side, the channel support breakpoint, around the $1820 area, now seems to act as immediate resistance. Any subsequent move up could be seen as a selling opportunity and remain capped near the $1835 area (38.2% Fibo.).

XAU/USD daily chart


Technial levels to watch


Today last price 1812.65
Today Daily Change 5.14
Today Daily Change % 0.28
Today daily open 1807.51
Daily SMA20 1881.05
Daily SMA50 1894.53
Daily SMA100 1910.39
Daily SMA200 1796.36
Previous Daily High 1839.05
Previous Daily Low 1800.41
Previous Weekly High 1899.14
Previous Weekly Low 1852.8
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1815.17
Daily Fibonacci 61.8% 1824.29
Daily Pivot Point S1 1792.26
Daily Pivot Point S2 1777.02
Daily Pivot Point S3 1753.62
Daily Pivot Point R1 1830.9
Daily Pivot Point R2 1854.3
Daily Pivot Point R3 1869.54



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News