• Gold price retreats from the weekly high set on Friday and is pressured by a combination of factors.
  • An uptick in US Treasury bond yields, US Dollar bounce and a positive risk tone undermine the metal.
  • Bets for less aggressive rate hikes by Federal Reserve help limit any further losses for the XAU/USD.

Gold price retreats from a fresh weekly high touched earlier this Friday and remain on the defensive through the mid-European session. The XAU/USD is currently placed just above the $1,750 level and for now, seems to have snapped a three-day winning streak. The downtick, however, lacks follow-through and warrants caution before confirming that a two-day-old up trend from the $1,725 region, or a nearly two-week low touched on Wednesday, has run out of steam.

Modest US Dollar uptick and a positive risk tone weigh on Gold price

The US Dollar attracts some buying amid a modest uptick in the US Treasury bond yields, which, in turn, is seen as a key factor acting as a headwind for the Dollar-denominated Gold price. Apart from this, a generally positive tone around the equity markets seems to dent demand for the safe-haven XAU/USD. That said, firming expectations for a less aggressive policy tightening by the Federal Reserve keeps a lid on any meaningful gains for the USD and helps limit the downside for the non-yielding yellow metal.

Dovish signals by Federal Reserve act as a tailwind for Gold price

In fact, the November Federal Open Market Committee (FOMC) meeting minutes released on Wednesday showed that officials were largely satisfied they could stop front-loading the rate increases. The dovish signal validated the peak inflation narrative and reaffirmed bets for a relatively smaller 50 bps rate hike at the next FOMC policy meeting in December. This, in turn, dragged the yield on the benchmark 10-year US government bond to its lowest level since early October, which, in turn, should cap the US Dollar.

China’s COVID-19 woes contribute to limiting losses for Gold price

Furthermore, the worsening COVID-19 situation in China and the imposition of fresh lockdowns might also lend some support to the safe-haven XAU/USD. In the absence of any major market-moving economic releases, traders might also refrain from placing aggressive bets around Gold price amid relatively lighter trading volumes on the last day of the week. Nevertheless, the precious metal remains on track to post modest weekly gains as the focus shifts to next week's important US macro releases, including the closely-watched NFP report.

Traders now look to next week’s key US macro data for a fresh impetus

Apart from this, traders will take cues from the Prelim Q3 GDP report on Wednesday and Core PCE Price Index - the Fed's preferred inflation gauge on Thursday. This, along with Federal Reserve Chair Jerome Powell's speech, will play a key role in influencing the near-term US Dollar price dynamics and provide a fresh directional impetus to Gold price.

Gold price technical outlook

From a technical perspective, any subsequent slide below the $1,750 level now seems to find decent support near the $1,736-$1,735 region. The next relevant support for Gold price is pegged near the $1,725 zone, or a nearly two-week low touched on Wednesday. A convincing break below the latter might prompt some technical selling and drag spot prices further towards the $1,700 round-figure mark.

On the flip side, the $1,760-$1,762 area now seems to have emerged as an immediate hurdle. Some follow-through buying will be seen as a fresh trigger for bulls and lift Gold price to the $1,772 intermediate barrier. The momentum could get extended towards the $1,778 zone en route to the $1,786 region, or the highest level since mid-August touched earlier this month. 

Key levels to watch


Today last price 1751.09
Today Daily Change -3.96
Today Daily Change % -0.23
Today daily open 1755.05
Daily SMA20 1715.38
Daily SMA50 1685.27
Daily SMA100 1711.94
Daily SMA200 1799.71
Previous Daily High 1758.68
Previous Daily Low 1749.26
Previous Weekly High 1786.55
Previous Weekly Low 1747.6
Previous Monthly High 1729.58
Previous Monthly Low 1617.35
Daily Fibonacci 38.2% 1755.08
Daily Fibonacci 61.8% 1752.86
Daily Pivot Point S1 1749.98
Daily Pivot Point S2 1744.91
Daily Pivot Point S3 1740.56
Daily Pivot Point R1 1759.4
Daily Pivot Point R2 1763.75
Daily Pivot Point R3 1768.82



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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD falls below 1.0500 after US NFP data

EUR/USD falls below 1.0500 after US NFP data

EUR/USD dropped below 1.0450 but managed to stage a modest rebound. The US Dollar preserves its strength against its rivals and doesn't allow the pair to gain traction after the data from the US showed that Nonfarm Payrolls rose by 263,000 in November.


GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD turns south on upbeat US jobs report, trades below 1.2200

GBP/USD lost nearly 100 pips with the immediate reaction to the upbeat November jobs report from the US and broke below 1.2200. The US Dollar Index clings to strong daily gains above 105.00 after the data showed that Nonfarm Payrolls rose by 263,000.


Gold retreats below $1,790 as US yields surge on US NFP

Gold retreats below $1,790 as US yields surge on US NFP

Gold price turned south and dropped below $1,790 in the early American session. The benchmark 10-year US Treasury bond yield is up more than 2% on the day near 3.6% after the bigger-than-expected November job growth, weighing heavily on XAU/USD.

Gold News

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange collapse, loss of $3.1 billion could have been avoided on one condition

FTX exchange, founded by Samuel Bankman-Fried (SBF), has consistently made headlines over the past month for its liquidity crisis and triggering a collapse in the crypto ecosystem.

Read more

AMC advances more than 3% in premarket day after being halted

AMC advances more than 3% in premarket day after being halted

AMC stock is up 3.4% in Friday's premarket just a day after authorities halted trading due to unusual volatility. Thursday saw options volume three times higher than the 20-day average.

Read more