Gold Price Analysis: XAU/USD needs to crack key $1803 level for additional recovery

Weekly closing above Nov 30 low offers a ray of hope for XAU/USD.
The bearish bias remains intact until gold stays below 21-DMA.
The recovery mode could extend into Asia’s weekly opening.

Dhwani Mehta FXStreet

Gold (XAU/USD) staged an impressive bounce Friday, having hit the lowest in seven months at $1761 in the Asian trades.

Despite the corrective pullback, gold ended the week on a negative note, as the rally in the US Treasury yields undermined the sentiment around the non-yielding gold.

From a short-term technical perspective, it was critical for gold to close the daily candlestick above the November 30 low of $1765, in order to offer some reprieve to the bulls (as explained here).

Gold Price Chart: Daily

Although, it may not negate the bearish bias as long as the price holds below the downward-sloping 21-daily moving average (DMA) at $1825.

Ahead of that level, the buyers need to find acceptance above the $1790 level, above which the January low of $1803 could be tested.

The 14-day Relative Strength Index (RSI) has bounced-off lows, still remains below the midline (the 50 level), indicating that additional recovery could be in the offing.

If the downtrend resumes, the seven-month troughs could be retested at $1761, opening floors towards the June 2020 low at around $1720.

Gold Additional levels

XAU/USD

Overview
Today last price	1782.04
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1782.04

Trends
Daily SMA20	1823.3
Daily SMA50	1853.19
Daily SMA100	1864.08
Daily SMA200	1859.14

Levels
Previous Daily High	1791.68
Previous Daily Low	1760.72
Previous Weekly High	1827.11
Previous Weekly Low	1760.72
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1779.85
Daily Fibonacci 61.8%	1772.55
Daily Pivot Point S1	1764.61
Daily Pivot Point S2	1747.19
Daily Pivot Point S3	1733.65
Daily Pivot Point R1	1795.57
Daily Pivot Point R2	1809.11
Daily Pivot Point R3	1826.53

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.