Gold Price Analysis: XAU/USD struggles for direction, flat-lined above $1,780 level


  • Gold struggled to capitalize on the overnight bounce from the vicinity of the $1,765-60 support.
  • The recent pullback and the lack of any follow-through buying warrants caution for bullish traders.

Gold reversed an intraday dip to the $1,774 area and is currently placed near the top end of its daily trading range, around the $1,782-83 region.

Worries that surging COVID-19 infections in some countries could derail the global economic recovery continued lending some support to the safe-haven XAU/USD. Apart from this, the emergence of some fresh selling around the US dollar further benefitted the dollar-denominated commodity. However, a modest pickup in the US Treasury bond yields kept a lid on any further gains for the non-yielding yellow metal.

From a technical perspective, the XAU/USD stalled its recent pullback from the vicinity of the $1,800 mark, or two-month tops and found decent support ahead of the $1,765-60 region. The mentioned area marked the neckline resistance breakpoint of a bullish double-bottom formation near the $1,677-76 region. The emergence of some dip-buying near the mentioned resistance-turned-support favours bullish traders.

Meanwhile, technical indicators on hourly/daily charts are holding in the bullish territory and add credence to the constructive set-up. That said, the lack of any strong follow-through buying warrants some caution. Moreover, the recent price action between two converging trend-line now seemed to constitute the formation of a rising wedge, suggesting that the corrective bounce might have run out of steam.

This, in turn, suggests that investors have now moved on the sidelines and await fresh catalyst from the latest FOMC monetary policy decision, due on Wednesday. Hence, it will be prudent to wait for a sustained move beyond the $1,800 mark before positioning for any further appreciating move. Conversely, a convincing break below the $1,765-60 resistance-turned-support might shift the bias back in favour of bearish traders.

XAU/USD 4-hour chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1782.6
Today Daily Change 1.44
Today Daily Change % 0.08
Today daily open 1781.16
 
Trends
Daily SMA20 1749.1
Daily SMA50 1746.55
Daily SMA100 1802.9
Daily SMA200 1856.94
 
Levels
Previous Daily High 1783.54
Previous Daily Low 1768.81
Previous Weekly High 1797.93
Previous Weekly Low 1763.7
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1777.91
Daily Fibonacci 61.8% 1774.44
Daily Pivot Point S1 1772.13
Daily Pivot Point S2 1763.11
Daily Pivot Point S3 1757.4
Daily Pivot Point R1 1786.86
Daily Pivot Point R2 1792.57
Daily Pivot Point R3 1801.59

 

 

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

Are you new to trading or have been trading for a while and you feel stuck?

Try with us!
Become Premium!
   

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD recovers within range, lacks follow-through

Encouraging macroeconomic data from the EU and the US boosted risked sentiment, which in turn, helped EUR/USD to advance, currently nearing the weekly high at 1.2075.

EUR/USD News

GBP/USD trades around 1.39 after a choppy reaction to the BOE

GBP/USD is trading around 1.39 after an 80-pip move around the BOE's "Super Thursday." The bank announced a slowdown in buying bonds but no change to the overall scope. US jobless claims and elections in Scotland are awaited. 

GBP/USD News

Gold Price Analysis: Gold bears seeking a correction to test bullish commitments

Gold has broken above the $1,800 mark, hitting the highest levels since February. The Confluence Detector is showing that XAU/USD has very few barriers through $1,850. Bears are lurking at resistance structure, eyeing a correction ahead of NFPs.

Gold News

Dogecoin price targets $1 as the chase for high-yielding cryptos accelerates

Dogecoin price strength combined with the complementary volume highlights the continued fascination in the digital token, portending further gains in the days ahead.

More Dogecoin News

US Nonfarm Payrolls April Preview: When the economy booms, its all about rates

The US labor market’s stars appear aligned for April.The economy is expanding rapidly, employers are confident and consumers eager to throw off the restraints of the past year.

Read more

Forex MAJORS

Cryptocurrencies

Signatures