- Gold’s recovery capped by the $1,820 area, stays under pressure.
- Improvement in risk sentiment offers limited help to the yellow metal.
- On a weekly basis, XAU/USD is down almost 4%.
Gold bottomed at $1,799 on Friday, the lowest level since February. A recovery followed later that found resistance quickly at $1,820. The yellow metal remains under pressure.
Some risk returns, not for gold
Wall Street is rising sharply on Friday, on a recovery rally. Also, crude oil prices are printing important gains. US yields remain steady and the dollar is correcting lower. Usually, that environment should be positive for gold. It only helped the metal stay above $1,800.
On the contrary, Silver is staging a recovery back to the 21.00 area and is positive on Friday up 1.50%, while on a weekly basis it is down almost 6%, about to post the lowest close since July 2020.
Both metals remain under pressure in the current environment of higher interest rate, a weaker growth outlook and financial tensions. The technical perspective offers no improvement as the only positive is the extreme oversold readings in technical indicators. There is no sign of a rebound or a consolidation yet.
Gold is about to post a weekly decline of almost 4%, the second worst performance of the year and a close below the 20-week moving average, for the first time since January.
“A prolonged weakening of the dollar doesn’t look likely in the current market environment. The factors that have been driving the greenback’s valuation, namely the ongoing Russia-Ukraine conflict, heightened inflation fears amid lockdowns in China and the Fed’s tightening prospects, should remain intact next week. Hence, it would be reasonable to expect that gold’s recovery attempts are likely to remain limited in the short term”, explained Eren Sengezer, analyst at FXStreet.
|Today last price||1808.99|
|Today Daily Change||-12.83|
|Today Daily Change %||-0.70|
|Today daily open||1821.82|
|Previous Daily High||1858.9|
|Previous Daily Low||1821.38|
|Previous Weekly High||1909.83|
|Previous Weekly Low||1850.44|
|Previous Monthly High||1998.43|
|Previous Monthly Low||1872.24|
|Daily Fibonacci 38.2%||1835.71|
|Daily Fibonacci 61.8%||1844.57|
|Daily Pivot Point S1||1809.17|
|Daily Pivot Point S2||1796.51|
|Daily Pivot Point S3||1771.65|
|Daily Pivot Point R1||1846.69|
|Daily Pivot Point R2||1871.55|
|Daily Pivot Point R3||1884.21|
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.