Gold Price Analysis: XAU/USD heads for lowest weekly close since June despite Friday’s recovery

Gold bounced on Friday, and managed to recover level above $1770.
Higher US yields continue to pressure the yellow metal.

Matías Salord FXStreet

After staging a sharp recovery from the lowest levels in seven months, gold prices are higher on Friday. XAU/USD bottomed at $1760/oz during the Asian session and then rebound. It peaked at $1790 after the beginning of the American session.

Near the end of the week, the metal is hovering around $1780, about to post the lowest weekly close since July and down by 2.35%.

Still weak, but also showing positive signs

Gold was able to recover after testing level under the important technical level of $1765/70. A consolidation below would clear the way to more losses. Also, on Friday, XAU/USD could post the first daily gain after a week of consecutive declines. From a technical perspective, a consolidation above $1790 would improve the bullish outlook for the metal.

Still, the recovery seems limited, and the pressure continues to favor the downside. The decline of the US dollar and the improvement in risk sentiment was offset by rising US yield. On Friday, the 10-year US yield climbed to 1.35%, the highest level in a year.

Technical levels

XAU/USD

Overview
Today last price	1783.54
Today Daily Change	8.80
Today Daily Change %	0.50
Today daily open	1774.74

Trends
Daily SMA20	1826.92
Daily SMA50	1854.34
Daily SMA100	1865.24
Daily SMA200	1858.94

Levels
Previous Daily High	1789.76
Previous Daily Low	1768.46
Previous Weekly High	1855.5
Previous Weekly Low	1807.86
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1781.62
Daily Fibonacci 61.8%	1776.6
Daily Pivot Point S1	1765.55
Daily Pivot Point S2	1756.35
Daily Pivot Point S3	1744.25
Daily Pivot Point R1	1786.85
Daily Pivot Point R2	1798.95
Daily Pivot Point R3	1808.15

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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