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.

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