Gold Price Analysis: XAU/USD downtrend holds as technicals turn bearish

Gold is likely to open the week with intense selling pressure under the 200-day SMA.
XAU/USD continues to struggle as the US dollar strengthens, downside eyes $1,800.

John Isige FXStreet

Gold has retraced significantly after topping out at a nine-year high above $2,000 in August 2020. Recovery from the downtrend has proved to be an uphill battle for the bulls. Besides, the last two weeks have seen XAU/USD drop from the new yearly high at $1,950 to $1,825.

The pessimistic outlook has been validated after the precious metal dived under the ascending channel’s middle boundary. Intense overhead pressure is expected under the 200-day Simple Moving Average.

The moving average convergence divergence, or MACD, adds credence to the bearish narrative. This technical indicator, which follows the path of a trend and calculates its momentum, appears to be turning bearish on the daily chart. As the 12-day exponential moving average crossed under the 26-day exponential moving average, the odds for a bearish impulse increased significantly.

XAU/USD daily chart

Gold may throw the bearish outlook out the window if support at $1,820 holds firmly. Moreover, closing the day above the 200 SMA would encourage buyers to increase their entries. If enough volume is created behind the precious metal, gold will embark on a recovery journey targeting $1,900.

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

EUR/USD eases marginally, back to 1.1800

EUR/USD navigates a narrow range on Thursday, hovering around the 1.1800 neighbourhood in a context of humble gains in the US Dollar. The pair’s lacklustre performance come amid the unabated trade uncertainty, geopolitical tensions in the Middle East and the cautious tone from the ECB’s Lagarde.

GBP/USD retreats from tops, approaching 1.3540

GBP/USD partially sets aside Wednesday’s strong advance and recedes to the 1.3540 region on Thursday. Cable’s modest retracement follows the equally acceptable gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold clings to gains just below $5,200, focus on geopolitics

Gold is edging modestly higher on Thursday, adding to Wednesday’s uptick and holding just below the $5,200 mark per troy ounce against the backdrop of modest gains in the US Dollar. In the meantime, attention is turning to the geopolitical scenario following US-Iran nuclear talks.