Gold Price Analysis: XAU/USD retreats to $1,900 area, gains more than $10

  • Gold has gone into a consolidation phase after rising above $1,910.
  • Market mood turns sour on latest headlines on US stimulus talks.
  • US Dollar Index remains on track to close in the negative territory.

The troy ounce of the precious metal dropped to its lowest level in nearly a week at $1,882 on Wednesday but staged a decisive rebound in the second half of the day. After climbing to a daily high of 1,913, the XAU/USD pair has gone into a consolidation phase and was last seen gaining 0.65% on the day at $1,903.70.

USD recovers modestly on safe-haven flows

Earlier in the day, the broad-based selling pressure surrounding the greenback helped XAU/USD push higher. However, the latest headlines surrounding the coronavirus relief bill negotiations in the US caused Wall Street's main indexes to turn red and helped the USD limit its losses.

US Treasury Secretary Mnuchin said on Wednesday that it was not going to be easy to reach a deal with Democrats before the presidential election despite the fact that they have been making progress on certain issues.

Reflecting the cautious market mood, major equity indexes in the US are down between 0.6% and 1.1%. Meanwhile, the US Dollar Index, which touched a daily low of 92.25, is losing 0.2% at 93.35.

There won't be any significant macroeconomic data releases in the remainder of the day and the USD's market valuation is likely to continue to impact the pair's movements. 

Technical levels to watch for


Today last price 1901.34
Today Daily Change 10.07
Today Daily Change % 0.53
Today daily open 1891.27
Daily SMA20 1902.22
Daily SMA50 1935.85
Daily SMA100 1866.11
Daily SMA200 1747.88
Previous Daily High 1925.48
Previous Daily Low 1886.58
Previous Weekly High 1930.62
Previous Weekly Low 1873.01
Previous Monthly High 1992.42
Previous Monthly Low 1848.82
Daily Fibonacci 38.2% 1901.44
Daily Fibonacci 61.8% 1910.62
Daily Pivot Point S1 1876.74
Daily Pivot Point S2 1862.21
Daily Pivot Point S3 1837.84
Daily Pivot Point R1 1915.64
Daily Pivot Point R2 1940.01
Daily Pivot Point R3 1954.54



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 


EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 


Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bank of Canada Rate Decision Preview: No change anticipated in interest rate

The Bank of Canada is widely expected to keep monetary policy and quantitative easing unchanged at its meeting on Wednesday in spite of new COVID-19 provincial lockdowns and a slowing economy.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News