Gold Price Analysis: XAU/USD nurses losses below $1,800, China’s return, US dollar moves in focus


  • Gold bears catch a breather around November 30 low after consecutive five days of declines.
  • US dollar ignores pullback in Treasury yields, rises for second day on upbeat data, stimulus hopes.
  • No major data/events in Asia, except for Aussie jobs report, but Chinese traders’ reaction to latest catalysts will be important.

Gold struggles to overcome the lowest levels in 12 weeks, marked the previous day, with a brief bounce to $1,776 amid the early Asian session on Thursday. In doing so, the yellow metal tries to defy the five-day downtrend but the corrective pullback awaits fresh clues as China hits the floor after one-week holidays. Also challenging the mood could be the US dollar’s latest gains despite the easy move by Wall Street benchmarks and the Treasury yields.

Dragon’s moves during the year of Ox will be the key…

As China returns to trading after the Lunar New Year holidays after a week, it may start reacting to the latest catalysts ranging from vaccine optimism to the US hints on future relations, not to for the jump in the American bond yields. Among them, its reply to US President Joe Biden’s indirect threat saying, “There will be repercussions for China” could add to the bullion’s safe-haven demand. Furthermore, the Sino-Australian tussle and the latest turning down New Zealand seafood imports may also add to the geopolitical tension.

Elsewhere, the US dollar gains from over a month’s low to the eight-day top recently gained support from Wall Street and bond yields while taking clues from the upbeat Retail Sales, Industrial Production and Producers Price Index (PPI) data at home. Also on the positive side could be the nearness to US President Biden’s $1.9 trillion covid relief package. In his latest comments, during the meet with the labor leaders, US President Biden said, “Polls show the majority support American rescue plan.

Amid these plays, S&P 500 Futures waver around 3,930 while trying to keep the previous day’s recovery moves. However, the US 10-year Treasury yields’ latest weakness, down 1.7 basis points (bps) to 1.282%, probes the risk-on mood.

Looking forward, an escalation in the US-China tussle may not endanger the US dollar’s run-up and can keep the gold prices heavy if Beijing pushes for extra liquidity and highlights those moves that the dislike for America.

Technical analysis

A clear break of over 2.5-month-old support line, now resistance around $1,790, directs gold prices toward the November 2020 low near $1,765.

additional important levels

Overview
Today last price 1776.46
Today Daily Change -18.84
Today Daily Change % -1.05%
Today daily open 1795.3
 
Trends
Daily SMA20 1836.39
Daily SMA50 1856.82
Daily SMA100 1867.66
Daily SMA200 1858.43
 
Levels
Previous Daily High 1826.54
Previous Daily Low 1789.54
Previous Weekly High 1855.5
Previous Weekly Low 1807.86
Previous Monthly High 1959.42
Previous Monthly Low 1802.8
Daily Fibonacci 38.2% 1803.67
Daily Fibonacci 61.8% 1812.41
Daily Pivot Point S1 1781.05
Daily Pivot Point S2 1766.79
Daily Pivot Point S3 1744.05
Daily Pivot Point R1 1818.05
Daily Pivot Point R2 1840.79
Daily Pivot Point R3 1855.05

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Pepe price forecast: Eyes for 30% rally

Pepe price forecast: Eyes for 30% rally

Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures