Gold Price Analysis: XAU/USD in stasis, impending death cross may be a bear trap

  • The US dollar weakness fails to lift gold. 
  • An impending death cross may mark a major bottom.

Gold lacks clear directional bias despite an improved risk appetite and weakness in the US dollar. The yellow metal's daily chart shows key averages are set to chart a bearish crossover. 

At press time, gold is trading near $1,845 per ounce, having dropped by 0.24% on Monday. 

The US President Joe Biden announced on Tuesday that his administration is boosting weekly vaccine supply, weakening the selling pressure in stocks, and pushing the anti-risk dollar lower. Additional bearish pressure likely emerged from the International Monetary Fund's upward revision of the 2021 global growth forecasts. 

The dollar index, which tracks the greenback's value against majors, fell 0.27% to 90.27 on Tuesday and is trading flat near that level at press time. So far, however, the dollar weakness has failed to propel gold higher. 

The bulls need quick progress, as the 50-day Simple Moving Average (SMA) is on track to cross below the 200-day SMA in the next couple of days. That would confirm a death cross, a long-term bearish indicator. 

However, crossovers are lagging indicators, as SMAs are based on historical data and often mark major bottoms/tops. The metal's downtrend from the record high of $2,075 reached in August may bottom out with the impending death cross.

A move above the lower high of $1,875 created on Jan. 21 is needed to confirm a short-term bullish reversal. Meanwhle, the Jan. 18 low of $1,802 is the level to beat for the sellers. 

Daily chart

Trend: Neutral-to-bullish

Technical levels


Today last price 1845
Today Daily Change -4.52
Today Daily Change % -0.24
Today daily open 1851.36
Daily SMA20 1873.34
Daily SMA50 1858.08
Daily SMA100 1881.2
Daily SMA200 1849.34
Previous Daily High 1861.8
Previous Daily Low 1848.46
Previous Weekly High 1875.2
Previous Weekly Low 1802.8
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1853.56
Daily Fibonacci 61.8% 1856.7
Daily Pivot Point S1 1845.95
Daily Pivot Point S2 1840.53
Daily Pivot Point S3 1832.61
Daily Pivot Point R1 1859.29
Daily Pivot Point R2 1867.21
Daily Pivot Point R3 1872.63



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 bounces on dovish Fed’s Powell

US Federal Reserve chief Powell testifies on monetary policy before Congress. “Economy remains a long way from achieving its inflation and employment goals,” Powell said. EUR/USD nears daily highs.


GBP/USD storms the 1.4100 level on dollar’s weakness

The greenback accelerated its slump with Powell conservative outlook, who said that substantial economic progress will take some time. GBP/USD trading at fresh three-year highs.


DOGE in trouble as multiple technical indicators scream sell

Dogecoin price hints at a 75% upswing as the bull flag pattern develops. A decisive close above $0.058 would indicate a start of a bullish breakout. Mounting selling pressure could invalidate crucial support at $0.047 and push it down by 20% to $0.037.

Read more

XAU/USD choppy either side of $1800 level as Fed Chair Powell’s testimony gets underway

XAU/USD has chopped either side of the $1800 level in recent trade. Gold prices and broader financial markets await comments from Fed Chair Powell on recent bond market moves.

Gold news

US Dollar Index: Formidable support is located at 90.00

DXY tests and rebound from the key 90.00 neighbourhood. Further south of this level comes in the 2021 lows at 89.20.

US Dollar Index News