Gold Price Analysis: XAU/USD extends the heaviest drop in three weeks below $1,800

  • Gold remains pressured after staging the notable downside.
  • S&P 500 Futures stretches losses from Treasury yield havoc.
  • US stimulus, PCE data will be the key but bond moves keep the driver’s seat.

Gold prices drop to $1,767, down 0.13% intraday, during Friday’s Asian session. In doing so, the yellow metal tracks the corrective pullback in S&P 500 Futures after the Treasury yields roiled global markets the previous day.

Markets pay a little heed to Fedspeak…

Although the Federal Reserve policymakers signaled that they are neither concerned nor should be about the jump in the Treasury yields, the same triggered market havoc and propelled the US dollar index (DXY) on Thursday. The US central bankers keep emphasizing their readiness to buy bonds but market players don’t listen and propel the coupons to the yearly top.

The resulted moves dragged equities amid the reflation fears while the US dollar’s recovery moves from a seven-week low weighed on the commodities and Antipodeans.

It should be noted that the vaccine optimism and upbeat prints of the US Q4 GDP, Durable Goods Orders and drop in weekly Jobless Claims were additional reasons for the US dollar’s recovery. Also on the positive side could be the hopes of President Joe Biden’s $1.9 trillion covid relief stimulus as the latest market chatters suggest the bill is to be voted in the Lower House today.

Against this backdrop, S&P 500 Futures drop 0.40% whereas the US 10-year Treasury yields rise 3.8 basis points to 1.55%.

Looking forward, gold traders will keep eye on the Treasury yields’ moves while also observing the US Core PCE data for January for fresh impulse. It should, however, be noted that the bears are likely to keep the reins until any major negatives renew gold’s safe-haven demand.

Technical analysis

Gold bears need a successful break below July 2020 low near $1,757 to extend the latest south-run. It should, however, be noted that the bulls are less likely to return until witnessing a daily close beyond a seven-week-old resistance line, currently near $1,805.

Additional important levels

Today last price 1770.06
Today Daily Change 0.36
Today Daily Change % 0.02%
Today daily open 1769.7
Daily SMA20 1813.05
Daily SMA50 1848.27
Daily SMA100 1860.21
Daily SMA200 1860.3
Previous Daily High 1805.86
Previous Daily Low 1765.56
Previous Weekly High 1827.11
Previous Weekly Low 1760.72
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1780.95
Daily Fibonacci 61.8% 1790.47
Daily Pivot Point S1 1754.89
Daily Pivot Point S2 1740.07
Daily Pivot Point S3 1714.59
Daily Pivot Point R1 1795.19
Daily Pivot Point R2 1820.67
Daily Pivot Point R3 1835.49



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

Take advantage of market volatility with our daily Forex, Crypto and Indices Trade Ideas!

Become Premium!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD steady above 1.2000 as investors wait for the ECB

EUR/USD is unchanged around 1.2030 for a second consecutive day, as speculative interest holds back ahead of the European Central Bank decision.


GBP/USD trades above 1.39 as the dollar takes a breather

GBP/USD has bounced back above 1.39, recovering as the dollar cedes some ground. The greenback benefited from the risk-off mood, while the pound struggles after CPI missed with 0.7% and as UK PM Johnson warns of winter covid wave.


EUR/USD steady above 1.2000 as investors wait for the ECB

EUR/USD is unchanged around 1.2030 for a second consecutive day, as speculative interest holds back ahead of the European Central Bank decision.


Enjin Coin price shakes off selling pressure, primed for a 25% rally

Enjin Coin price outlook has shifted to neutral. It is on the verge of completing a high probability bottoming pattern, showing a positive divergence from some of the other cryptocurrencies that have printed new correction lows over the last couple of days. 

Read more

European Central Bank Preview: Five reasons for Lagarde to lift the euro

The German ZEW Economic Sentiment, the Sentix Investor Confidence and Markit's Purchasing Managers' Indexes have been rising and surprising to the upside in recent months. 

Read more