Gold Price Forecast: XAU/USD back under $1800 as markets extend sell-off


  • XAU/USD retreats more than $10 from daily highs.
  • Wall Street indices down more than 2%.
  • US yields at lowest in two weeks, 10-year at 1.50%.

Gold prices are up for the day but off highs. XAU/USD jumped to $1815 during the European session but then turned to the downside, pulling back under 1800$. The risk aversion environment kept gains limited and favoured the retreat.

US Treasuries are sharply higher on the back of risk aversion. The US 10-year is at the lowest since November 10 at 1.49%, after being near 1.70% two days ago; the 30-year is down 6% at 1.84%.

Concerns about the new COVID-19 variant weighed on market sentiment and is looking to affect monetary policy expectations. The restrictions announcements across Europe pushed equity and crude oil prices sharply to the downside.

Initially, XAU/USD reacted to the upside, boosted by lower US yields. The rally was limited, and as of writing, it is retreating, affected by the global sell-off and a mixed US dollar. A firm recovery above $1810 could remove the negative tone in the short term; while a daily close under $1780 would suggest more losses ahead.

Technical levels

XAU/USD

Overview
Today last price 1800.44
Today Daily Change 11.61
Today Daily Change % 0.65
Today daily open 1788.83
 
Trends
Daily SMA20 1822.15
Daily SMA50 1789.81
Daily SMA100 1793.53
Daily SMA200 1791.84
 
Levels
Previous Daily High 1795.14
Previous Daily Low 1786.06
Previous Weekly High 1877.23
Previous Weekly Low 1843.04
Previous Monthly High 1813.82
Previous Monthly Low 1746.07
Daily Fibonacci 38.2% 1791.67
Daily Fibonacci 61.8% 1789.53
Daily Pivot Point S1 1784.88
Daily Pivot Point S2 1780.93
Daily Pivot Point S3 1775.8
Daily Pivot Point R1 1793.96
Daily Pivot Point R2 1799.09
Daily Pivot Point R3 1803.04

 

 

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