Gold Price Analysis: XAU/USD closed week above key Fibo support at $1,680

XAU/USD closed the week in the negative territory.
Buyers are likely to remain in control as long as gold stays above $1,680.

Eren Sengezer FXStreet

The troy ounce of the precious metal dropped to its lowest level in ten days at $1,670 on Friday but staged a rebound during the American trading hours boosted by risk-off flows. Although the XAU/USD pair closed the day in the positive territory a little above the $1,700 handle, it lost 1.63%, or $28, on a weekly basis.

XAU/USD technical outlook

With Friday's late recovery, the pair closed above the 20-day SMA and showed that buyers are not yet ready to give away the control. Additionally, the RSI indicator on the daily chart turned north after testing the 50 handle earlier in the week to confirm the near-term bullish outlook.

On the downside, $1,680 (Fibonacci 23.6% retracement of Mar. 20 - April 14 rally) aligns as a critical support. With a daily close below that level, the pair could extend its slide toward $1,660 (Apr. 21 low) before $1,640 (50-day SMA). On the other hand, as long as the price holds above $1,680, the pair could try to gather momentum and test $1,720 (static resistance) ahead of $1,750 (multi-year highs).

XAU/USD daily chart

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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