Gold Price Analysis: XAU/USD trims weekly losses towards regaining $1,900 threshold

Gold keeps Wednesday’s gains despite recent pullback from intraday high.
Brexit optimism, hopes of US stimulus favor market’s mood amid the quiet session.
EU-UK statements, US Congress moves eyed for fresh impulse before Christmas.

Anil Panchal FXStreet

Gold prices ease from the intraday top near $1,880 to $1,876 during early Thursday. Even so, the yellow metal stays positive for the second consecutive day amid US dollar weakness and broad risk-on mood.

US President Donald Trump’s obstruction to the bills relating to defense and covid stimulus weigh on the US dollar index (DXY) that drops 0.13% by press time.

Also weighing on the greenback, while favoring the broad risks and commodities, is US Democratic Party’s readiness to inflation the paycheck amount in the aid package from $600 to $2,000. Furthermore, chatters that the Brexit deal is imminent also favor the bulls.

Even so, US President Trump’s warning to Iran and the on-going coronavirus (COVID-19) woes in the UK challenge the risk-on mood. Additionally, dull trading session amid the holidays season restricts the market moves.

Against this backdrop, S&P 500 Futures join Asia-Pacific stocks to print mild gains.

Looking forward, policymakers from the European Union (EU) and the UK are up for delivering Brexit statements early in the European session. Should they manage to meet the market expectations, risk-on will continue to favor gold prices.

Following that, Capitol Hill will amend bills relating to defense and covid aid package, which is less likely to cause any disappointment and favor the upbeat mood.

Overall, gold prices are likely to end the year 2020 on a positive note. Though the US dollar is near a multi-month low and a bounce can consolidate the yellow metal’s gains.

Technical analysis

Considering the resistance to confirm the short-term rising wedge, with a downside break below $1,864, gold prices head towards the 100-day SMA level near $1,900.

Additional important levels

Overview
Today last price	1876.04
Today Daily Change	3.45
Today Daily Change %	0.18%
Today daily open	1872.59

Trends
Daily SMA20	1843.28
Daily SMA50	1869.05
Daily SMA100	1901.08
Daily SMA200	1820.01

Levels
Previous Daily High	1878.67
Previous Daily Low	1858.92
Previous Weekly High	1896.3
Previous Weekly Low	1819.08
Previous Monthly High	1965.58
Previous Monthly Low	1764.6
Daily Fibonacci 38.2%	1871.13
Daily Fibonacci 61.8%	1866.46
Daily Pivot Point S1	1861.45
Daily Pivot Point S2	1850.31
Daily Pivot Point S3	1841.7
Daily Pivot Point R1	1881.2
Daily Pivot Point R2	1889.81
Daily Pivot Point R3	1900.95

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.

Week ahead: US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. Dollar strength might be tested if investors refocus on Fed expectations. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify. Euro weakness persists, lingering risk of deterioration in US-EU relations.

Week ahead – US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify.

XRP trades under pressure amid weak retail demand

XRP presses down on the 50-day EMA support as risk-averse sentiment spreads despite a positive start to 2026. XRP faces declining retail demand, as reflected in futures Open Interest, which has fallen to $4.15 billion.