Gold Price Analysis: XAU/USD closed week with small losses near $1,730

Risk-averse market environment helped gold find demand on Friday.
The daily RSI suggests that bullish momentum is building up.

Eren Sengezer FXStreet

The XAU/USD pair closed the first three days of the week in the negative territory and lost nearly 1.5% during that period. After touching its lowest level in two weeks at $1,694 on Wednesday, the pair reversed its direction and staged a decisive rebound in the second half of the week to close near $1,730.

The risk-off market environment amid worries over escalating US-China geopolitical tensions helped gold find demand as a safe-haven.

Technical outlook

The Relative Strength Index (RSI) indicator on gold's daily chart started to edge higher toward 60 to suggest that buyers are starting to take control of the price action. Moreover, XAU/USD closed above the 20-day SMA after breaking below that line in mid-week.

On the upside, $1,735/40 area (static level) aligns as the initial resistance. With a daily close above that area, gold could target $1,755 (May 20 high) and $1,765 (multi-year high). Supports could be seen at $1,720 (20-day SMA), $1,700 (psychological level) and $1,685 (50-day SMA).

Additional levels

XAU/USD

Overview
Today last price	1729.4
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1729.4

Trends
Daily SMA20	1719.34
Daily SMA50	1684.74
Daily SMA100	1634.41
Daily SMA200	1565.08

Levels
Previous Daily High	1737.78
Previous Daily Low	1712.96
Previous Weekly High	1737.78
Previous Weekly Low	1693.78
Previous Monthly High	1747.82
Previous Monthly Low	1568.46
Daily Fibonacci 38.2%	1728.3
Daily Fibonacci 61.8%	1722.44
Daily Pivot Point S1	1715.65
Daily Pivot Point S2	1701.89
Daily Pivot Point S3	1690.83
Daily Pivot Point R1	1740.47
Daily Pivot Point R2	1751.53
Daily Pivot Point R3	1765.29

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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