- The rise in Asian stocks knocks-off Gold.
- Range-play intact while within a symmetrical triangle.
- A break above $1766/67 is needed for the further upside.
The overnight recovery in Gold (XAU/USD) stalled once again near the 1766 region, as the Asian stocks rallied, tracking the late gains on Wall Street, which dulled the allure of the safe-haven.
Reversing from higher levels, the yellow metal flirts near-daily low of 1760.86, at the time of writing. The spot is down 0.15% so far.
Technically, the price trades within familiar ranges within a potential symmetrical triangle pattern on the hourly chart, with the risks skewed to the downside so long as it stays below the horizontal 50-hourly Simple Moving Average (HMA), now aligned at 1766. That hurdle is a tough nut to crack, as the falling trendline resistance coincides there.
The hourly Relative Strength Index (RSI) trades flat just below the mid-line, suggesting that the bearish pressure still persists.
Should the bulls manage to clear the critical 50-HMA barrier, the triangle breakout will get confirmed and the 1800 level will be back on the bulls’ radar.
Alternatively, the rising trendline resistance at 1760 could limit the downside, as the pair tests the bears’ commitment around 1761 (100-HMA), where it now wavers.
A breach of the 1760 level will validate the triangle breakdown, opening floors for a test of the upward sloping 200-HMA at 1744.62. Ahead of that support, the 1750 psychological level could be put to test.
All in all, the bulls need to clear the 50-HMA for the further upside in the near-term. Focus shifts to the US personal income and spending data for fresh trading impetus.
Gold: Hourly chart
Gold: Additional levels
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.
Latest Forex News
Editors’ Picks
EUR/USD hits fresh one-month low amid souring market mood
EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points.
GBP/USD retreats toward 1.36 amid fresh dollar strength
GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown.
Gold extends sideways grind near $1,850
The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.
Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed
Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative.
DXY breaks above key downtrend, eyes move above 91.00
USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.