Gold Price Forecast: XAU/USD rebounds from weekly lows to the $2,020 area
- Gold rebounds despite stronger US Dollar.
- XAU/USD find support above $2,000 and rises erasing daily losses.
Gold prices rose significantly during the last hour, turning positive for the day. XAU/USD bottomed at $2,000, the lowest level in a week, before quickly rising to the $2,020 zone, where it remains at its daily highs with a bullish sentiment.
The move higher followed the release of the US Import and Export Price Index, which, as expected, showed notable declines from a year ago. These figures will help bring US inflation closer to the Federal Reserve's target. The next report to be released will be the US Consumer Confidence Index.
The move higher in Gold is taking place even as the US Dollar trades at daily and weekly highs against its main rivals. EUR/USD is below 1.0900, the lowest since mid-April, while AUD/USD holds below 0.6700, at one-week lows.
If XAU/USD continues to rise, the next resistance level is seen at $2,025, followed by the $2,045 area. A retreat below $2,010 would weaken the intraday outlook, exposing the $2,000 mark again.
Gold is headed toward a small weekly gain, the second in a row. The trend is up, but the fact that it is far from the weekly high and from the recent top indicates that the momentum is waning.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
