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 retreats toward 1.1600 after upbeat US data

EUR/USD pulls away from session highs and declines toward 1.1600 in the American session on Wednesday. Upbeat private sector employment and ISM Services PMI data from the US help the US Dollar (USD) stay resilient against its rivals, limiting the pair's upside.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery struggles to gather momentum as the Greenback benefits from better-than-forecast macroeconomic data releases.

Gold loses traction after testing $5,200

Gold corrects lower after testing $5,200 but manages to stay in positive territory in the second hald of the day on Wednesday. The precious metal remains well supported by the deterioration of the geopolitical scenario in the Middle East, while the US Dollar's resilience caps the upside.