Gold Price Analysis: XAU/USD remains trapped between key averages, awaits US data

Gold attempts a bounce, as the US dollar pulls back from multi-month tops.
XAU/USD wavers between 21 and 100-SMAs on the 4H chart.
All eyes on the US data for a range breakout in gold.

Dhwani Mehta FXStreet

Gold (XAU/USD) is looking to regain $1730, as the US dollar bulls take a breather after the recent advance to multi-month peaks.

The greenback remains buoyed by the US economic optimism and higher Treasury yields. Stronger US Jobless Claims further fuelled expectations of a faster economic recovery. Meanwhile, speeding vaccines rollout in America also backs the recent gains in the buck.

Gold markets now await a fresh batch of US economic releases, including the Fed’s preferred inflation gauge – the Core PCE Index, for fresh trading impetus.

From a short-term technical perspective, gold has entered a downside consolidative mode after Thursday’s reversal from $1746 levels.

Gold Price Chart: Four-hour

Gold remains locked in a tight range on the four-hour chart, looking for a fresh direction likely on the US data release.

The bearish 21-simple moving average (SMA) at $1732 caps the rebound from weekly lows of $1721.80.

Meanwhile, the downside appears cushioned by the horizontal 100-SMA at $1723.

The Relative Strength Index (RSI) has ticked higher to 45.59, still remains below the midline, suggesting that the bearish bias still remains intact for gold.

The previous month low of $1717 could offer some strong support, below which the $1700 mark could be put at risk.

Alternatively, a sustained move above the 21-SMA barrier could expose the 50-SMA hurdle at $1735. The XAU bulls would then gear up for a rally towards the descending 200-SMA resistance at $1755.

Gold: Additional levels

XAU/USD

Overview
Today last price	1729.05
Today Daily Change	1.96
Today Daily Change %	0.11
Today daily open	1727.11

Trends
Daily SMA20	1724.13
Daily SMA50	1784.61
Daily SMA100	1824.19
Daily SMA200	1860.67

Levels
Previous Daily High	1745.52
Previous Daily Low	1721.8
Previous Weekly High	1755.59
Previous Weekly Low	1719.3
Previous Monthly High	1871.9
Previous Monthly Low	1717.24
Daily Fibonacci 38.2%	1730.86
Daily Fibonacci 61.8%	1736.46
Daily Pivot Point S1	1717.43
Daily Pivot Point S2	1707.76
Daily Pivot Point S3	1693.71
Daily Pivot Point R1	1741.15
Daily Pivot Point R2	1755.2
Daily Pivot Point R3	1764.87

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.

EUR/USD remains offered near 1.1950

EUR/USD comes under pressure near the 1.1950 zone following the closing bell on Wall Street on Wednesday. The Greenback’s rebound prompted spot to face some correction while investors continue to assess the latest FOMC event. On Thursday, the focus of attention will be on the weekly US labour market data and Factory Orders.

GBP/USD hesitates at four-year highs following lackluster Fed rate hold

GBP/USD churned in place on Tuesday, hitting a brief patch of volatility but otherwise holding steady near four-year highs as the US Dollar struggles to find its footing. The Federal Reserve held interest rates steady, as many investors broadly anticipated, but the Fed’s rate statement and Fed Chair Jerome Powell both failed to give any hints about potential shifts toward future rate cuts, which many investors broadly hoped.

Gold climbs above $5,500 for the first time on record

Gold price surges to a fresh record high of $5,579 before retreating to around $5,500 in early Asian trading on Thursday. The rally of the precious metal is bolstered by strong safe-haven demand amidst persistent geopolitical tensions, economic uncertainty, and a weaker US Dollar.

Fidelity unveils FIDD stablecoin, set to launch in coming weeks

Fidelity Investments announced that it will launch its first stablecoin, the Fidelity Digital Dollar, making it one of the first large traditional firms in the US to do so. The company will leverage the Ethereum blockchain to roll out the product to retail and institutional investors in the coming weeks, according to a press release on Wednesday.

Federal Reserve pauses, sees economy on firm footing

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

Bittensor Price Forecast: TAO rallies above $240 as AI tokens rebound

Bittensor reclaims $240 immediate support, reflecting positive sentiment in the broader crypto market. The TAO derivatives market signals retail interest return as futures Open Interest climbs to $163 million.