- XAU/USD closed the previous week with small gains at $1,702.
- Near-term outlook suggests that gold is likely to continue to move sideways.
- $1,680 alings as a critical Fibonacci support for the pair.
The troy ounce of the precious metal posted small gains and closed the previous week at $1,702. With the greenback gathering strength and the upbeat market mood in the US session dampening the safe-haven demand, the pair edged lower and was last seen down 0.2% on the day at $1,699.
XAU/USD technical outlook
The RSI indicator on the daily chart continues to move sideways near the 50 mark, suggesting that the pair is having a difficult time making a decisive move in either direction in the near-term. However, the pair looks to close the day below the 20-day SMA, which could be taken as a sign that the bearish pressure could build up.
On the downside, $1,680 (Fibonacci 23.6% retracement of Mar. 20 - April 14 rally) is a significant support ahead of $1,660 (Apr. 21 low) and $1,646 (50-day SMA). On the other hand, a daily close above $1,700 could open the door to $1,720 (static resistance) and $1,750 (multi-year highs).
XAU/USD daily chart
Additional technical 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains under pressure from RBA rate decision
AUD/USD spiked lower by more than 20 pips following the RBA rate announcement to test the key psychological support at 0.6600. Losing this key level could see the currency pair trek lower towards the 100-hour EMA support near 0.6580.
EUR/USD edges lower to near 1.0750 due to the upward correction in the US Dollar
EUR/USD snaps its four-day winning streak, trading around 1.0760 during the Asian hours on Tuesday. However, the Euro found support from higher-than-expected Eurozone Purchasing Managers Index data released on Monday.
Gold price extends its upside as markets react to downbeat jobs data
Gold price extends its recovery on Tuesday. The uptick of the yellow metal is bolstered by the weaker US dollar after recent US Nonfarm Payrolls (NFP) data boosted bets that the Federal Reserve would cut interest rates later this year.
Bitcoin miner Marathon Digital stock gains ground after listing by S&P Global
Following Bitcoin miner Marathon Digital's inclusion as an upcoming member of the S&P SmallCap 600, the company's stock received an 18% boost, accompanied by an $800 million rise in market cap.
The impact of economic indicators and global dynamics on the US Dollar
Recent labor market data suggest a cooling economy. The disappointing job creation and rising unemployment hint at a slackening demand for labor, which, coupled with subdued wage growth, could signal a slower economic trajectory.