Gold Price News and Forecast: XAU/USD bounce from sub-4H 200-SMA has stalled

FXStreet Team FXStreet

Gold Price Analysis: Bounce from sub-4H 200-SMA has stalled

Gold's overnight drop below the 4-hour chart 200-candle simple moving average (SMA) was short-lived, possibly due to US-China tensions. Technical charts, however, indicate the bounce could be undone during the day ahead.

The yellow metal found bids near $1,708 and rose back above the widely-tracked SMA of $1,711 to hit a high of $1,715 a few minutes before press time.

Gold to rise towards $1775 this week

The past weeks showed that hopes on vaccine offer great opportunities to sell USD/JPY and buy gold.

Risk assets traded higher early Tuesday morning to begin a holiday-shortened week, as optimism about a potential coronavirus vaccine built. However, our experience in the past weeks shows that such scenario only offers great opportunities to sell risk assets at good price.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.