Gold Price Analysis: XAU/USD erases losses ahead of Powell and Biden, tests $1850

Gold prices rebound from three-day lows, limited by $1850.
DXY turns negative ahead of Powell and Biden.

Matías Salord FXStreet

After the beginning of the American session, gold gained momentum and broke above $1943, hitting a fresh daily high at $1852. So far, it has been unable to remain above $1850. Price is moving sideways ahead of key speeches.

The yellow metal is gaining moment as market participants await Fed’s Powell speech. The recent increase in US bond yields and speculations about what the central bank will do over the next meetings make Powell’s words more interesting.

President-elect Joe Biden is expected to present its stimulus package. Investors anticipate a big relief package. Wall Street opened with modest gains and remained in the positive ground even after weaker-than-expected employment economic data.

The US dollar pulled back over the last hour in anticipation of the next events. The DXY is flat as of writing, hovering around 90.35, after hitting at 90.58, the highest level in two days.

XAU/USD is facing a strong resistance around $1850 and the 100-hours SMA. A consolidation above could open the door for a test of the weekly high around $1863. On the flip side, below $1843, the next support is $1835.

Technical levels

USD/MXN

Overview
Today last price	19.8404
Today Daily Change	0.0094
Today Daily Change %	0.05
Today daily open	19.831

Trends
Daily SMA20	19.9287
Daily SMA50	20.0599
Daily SMA100	20.7673
Daily SMA200	21.8072

Levels
Previous Daily High	19.8926
Previous Daily Low	19.7403
Previous Weekly High	20.1508
Previous Weekly Low	19.6008
Previous Monthly High	20.6648
Previous Monthly Low	19.7
Daily Fibonacci 38.2%	19.8344
Daily Fibonacci 61.8%	19.7985
Daily Pivot Point S1	19.75
Daily Pivot Point S2	19.669
Daily Pivot Point S3	19.5977
Daily Pivot Point R1	19.9023
Daily Pivot Point R2	19.9736
Daily Pivot Point R3	20.0546

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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