Gold Price Forecast: XAU/USD drops to $1,710 as US dollar rises with yields ahead of data

Gold Price holds lower ground after US dollar recovers ground after Tuesday’s steep sell-off.
Risk tone remains tepid amid geopolitical issues while Treasury yields recover.
XAU/USD corrects from three-week highs after rejection at the 50 DMA barrier.

Dhwani Mehta FXStreet

Gold Price is in the red for the first time so far this week, as the US dollar is seeing a sweeping demand amid a risk-off market profile. The greenback is unwinding the 1.3% overnight sell-off, which marked its biggest drop since March 2020 ahead of the critical US ADP employment report and ISM Services PMI.

Hopes for aggressive Fed rate hikes are back on the table after the hawkish RBNZ 50 bps rate increase, fuelling a fresh upswing in the US Treasury yields across the curve. The non-yielding gold feels the heat from the upsurge in the dollar alongside the yields.

Escalating geopolitical tensions between Russia and the West are doing little to offer any respite to XAU bulls, as risk-off flows and the dollar demand dominate across the financial market. Investors await the top-tier US economic releases and Fedspeak for fresh hints on the size of the next Fed rate hike.

Also read: Gold Price Forecast: 50 DMA appears a tough nut to crack for XAU/USD bulls ahead of US data

Technically, the bearish 50-Daily Moving Average (DMA) at $1,724 has tempered the gold price rally. A sustained break above the 50 DMA is needed to challenge the September highs at $1,735, above which the $1,750 psychological level will come into play.

On the downside, the previous critical resistance now support at $1,700 could offer temporary reprieve to buyers, below which the previous day’s low of $1,695 could be revisited.

Gold Price: Daily chart

Gold Price: Additional levels to consider

XAU/USD

Overview
Today last price	1712.00
Today Daily Change	-13.29
Today Daily Change %	-0.77
Today daily open	1726.18

Trends
Daily SMA20	1679.83
Daily SMA50	1724.74
Daily SMA100	1763.48
Daily SMA200	1823.63

Levels
Previous Daily High	1729.58
Previous Daily Low	1695.18
Previous Weekly High	1675.49
Previous Weekly Low	1614.85
Previous Monthly High	1735.17
Previous Monthly Low	1614.85
Daily Fibonacci 38.2%	1716.44
Daily Fibonacci 61.8%	1708.32
Daily Pivot Point S1	1704.38
Daily Pivot Point S2	1682.58
Daily Pivot Point S3	1669.98
Daily Pivot Point R1	1738.78
Daily Pivot Point R2	1751.38
Daily Pivot Point R3	1773.18

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.