Gold Price Analysis: XAU/USD hangs near multi-month lows, around $1830 area

  • Gold added to the overnight losses and remained depressed for the second straight session.
  • COVID-19 optimism boosted investors’ confidence and weighed on the safe-haven commodity.
  • Weaker USD, dovish Fed expectations extended some support and helped limit losses, for now.

Gold maintained its offered tone through the early European session, albeit has managed to pare a part of the early losses to four-month lows. The precious metal was last seen trading near the $1830 region, down around 0.50% for the day.

The commodity added to the overnight losses and witnessed some follow-through selling for the second consecutive session on Tuesday. The downfall also marked the fifth day of a negative move in the previous six and was sponsored by the prevalent risk-on environment, which tends to undermine demand for the safe-haven gold.

The global risk sentiment remained well supported by the latest optimism over a potential early rollout of vaccines for the highly contagious coronavirus disease. The already upbeat market mood got an additional boost on news that the US President-elect Joe Biden was given the go-ahead to begin his White House transition.

However, the emergence of some fresh selling around the US dollar extended some support to the dollar-denominated commodity. The greenback was pressured by growing market speculations for a further monetary easing by the Fed, which, in turn, helped the non-yielding yellow metal to find some support near the $1820 congestion zone.

That said, any meaningful recovery still seems elusive and the near-term bias for the XAU/USD remains tilted firmly in favour of bearish traders. Hence, some follow-through weakness towards testing the very important 200-day SMA support, currently pegged near the $1795 region, looks a distinct possibility.

Market participants now look forward to the US economic docket, featuring the releases of the Conference Board's Consumer Confidence Index and Richmond Manufacturing Index. The data might influence the USD price dynamics, which, along with the broader market risk sentiment, should produce some meaningful trading opportunities.

Technical levels to watch


Today last price 1828.64
Today Daily Change -7.48
Today Daily Change % -0.41
Today daily open 1836.12
Daily SMA20 1886.06
Daily SMA50 1897.46
Daily SMA100 1910.27
Daily SMA200 1795.22
Previous Daily High 1876.14
Previous Daily Low 1831.01
Previous Weekly High 1899.14
Previous Weekly Low 1852.8
Previous Monthly High 1933.3
Previous Monthly Low 1860
Daily Fibonacci 38.2% 1848.25
Daily Fibonacci 61.8% 1858.9
Daily Pivot Point S1 1819.37
Daily Pivot Point S2 1802.63
Daily Pivot Point S3 1774.24
Daily Pivot Point R1 1864.5
Daily Pivot Point R2 1892.89
Daily Pivot Point R3 1909.63



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Bears hold the grip, critical challenge at 1.2000

The greenback firmed up at the end of the week, closing it with substantial gains against most major rivals. Renewed coronavirus concerns and poor macroeconomic data spurred risk-off. EUR/USD is firmly bearish.


GBP/USD: Further restrictions in the UK may hit the pound

The GBP/USD pair trimmed most of its weekly gains on Friday and settled in the 1.3580 price zone, amid risk-off fueling dollar’s demand. UK GDP contracted by less than anticipated in November, Industrial Production plunged.


Gold: Further decline toward $1,800 remains on the cards

Gold failed to stage a convincing rebound this week. After losing more than 2% in the previous week, the XAU/USD pair extended its slide on Monday and touched its lowest level since early December at $1,817. 

Gold news

Darkest fefore dawn

The upcoming economic news is likely to be dreadful, and if it is not dreadful, it will be mostly ignored. This includes the release of the preliminary January PMI figures at the end of the week. Japan is extending its national emergency to another five prefectures, which collectively account for over half of the nation's GDP.

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News