Gold Price Analysis: XAU/USD pulls away from daily highs, trades above $1,725


  • XAU/USD struggled to hold above $1,730 on Friday.
  • Risk-off market environment helps gold continue to find demand as a safe-haven.
  • Investors are waiting for US President Trump's announcement on China. 

The troy ounce of the precious metal advanced to a fresh daily high of $1,733 during the early trading hours of the American session but struggled to preserve its momentum. As of writing, the XAU/USD pair was trading at $1,727,60, gaining 0.5% on a daily basis.

The broad-based selling pressure surrounding the USD and the dismal market mood helped the pair gain traction on Friday. 

Later in the day, US President Donald Trump will hold a news conference about China and investors remain cautious ahead of this event. At the moment, Wall Street's main indexes are posting modest losses to help the safe-haven gold preserve its strength.

USD erases small part of daily losses

On the other hand, the data published by the US Bureau of Economic Analysis showed that Personal Spending in April declined by 13.6% on a monthly basis. However, further details of the publication showed that Personal Income in the same period surprisingly rose by 10.5%. 

With the initial market reaction to the data, the US Dollar Index (DXY) dropped to a multi-month low of 97.95 but recovered modestly in the last hour. At the moment, the DXY is still down 0.3% on the day 98.15.

Other data from the US on Friday will include the University of Michigan's Consumer Confidence Index. More importantly, US President Trump's presser at 1800 GMT will be watched closely by the market participants.

Technical levels to watch for

XAU/USD

Overview
Today last price 1729.28
Today Daily Change 9.71
Today Daily Change % 0.56
Today daily open 1719.57
 
Trends
Daily SMA20 1717.88
Daily SMA50 1679.61
Daily SMA100 1632.62
Daily SMA200 1563.93
 
Levels
Previous Daily High 1727.66
Previous Daily Low 1705.42
Previous Weekly High 1765.38
Previous Weekly Low 1717.34
Previous Monthly High 1747.82
Previous Monthly Low 1568.46
Daily Fibonacci 38.2% 1719.16
Daily Fibonacci 61.8% 1713.92
Daily Pivot Point S1 1707.44
Daily Pivot Point S2 1695.31
Daily Pivot Point S3 1685.2
Daily Pivot Point R1 1729.68
Daily Pivot Point R2 1739.79
Daily Pivot Point R3 1751.92

 

 

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