Gold Price Analysis: XAU/USD eyes 100-HMA support ahead of US PMIs, Biden

Gold clings to losses as the US dollar remains firmer on the session.
Mixed technical picture on the 1H chart keeps the sellers hopeful.
$1865 will offer strong resistance if XAU/USD bounces further.

Dhwani Mehta FXStreet

Gold (XAU/USD) is licking its wounds above $1860, although remains exposed to downside risks amid a broadly stronger US dollar and mixed technical view.

The US dollar remains on the bid, drawing haven demand amid potential risks to US President Joe Biden’s $1.9 trillion stimulus proposal and mounting coronavirus concerns globally.

Although, the bulls could be rescued by the weakness in the US Treasury yields, as markets turn risk-averse ahead of Biden’s speech due later on Friday at 1945 GMT. The US Markit Preliminary PMIs also remains in focus heading into the weekend.

Gold Price Chart: Hourly

As observed in the hourly chart, gold wavers in a falling channel formation, with the recovery moves likely capped by $1865. That level is the intersection of the 21-hourly moving average (HMA) and 50-HMA.

Also, it’s worth noting that a bearish crossover is formed on the said time frame, as the 21-HMA cuts the 50-HMA from above.

Therefore, the bearish pressures remain intact so long as the price holds below the $1865 hurdle.

Acceptance above that level could bring the two-week highs of $1875 back in play.

To the downside, the channel trendline support at $1856 is likely to be tested, below which the upward-sloping 100-HMA at $1852 will be put at risk.

The Relative Strength Index (RSI) points south while trending below the midline, suggesting that there is more room to the downside.

Gold Additional levels

XAU/USD

Overview
Today last price	1861.62
Today Daily Change	-7.50
Today Daily Change %	-0.40
Today daily open	1869.12

Trends
Daily SMA20	1876.86
Daily SMA50	1860
Daily SMA100	1883.53
Daily SMA200	1846.86

Levels
Previous Daily High	1875.2
Previous Daily Low	1858.43
Previous Weekly High	1863.83
Previous Weekly Low	1816.96
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1864.84
Daily Fibonacci 61.8%	1868.79
Daily Pivot Point S1	1859.97
Daily Pivot Point S2	1850.81
Daily Pivot Point S3	1843.2
Daily Pivot Point R1	1876.74
Daily Pivot Point R2	1884.35
Daily Pivot Point R3	1893.51

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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