Gold Price News and Forecast: XAU/USD could extend its slide

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD fades Friday’s recovery above $1,850 despite vaccine hopes

Gold prices remain depressed near $1,870, down 0.10% intraday, during the early Monday morning in Asia. In doing so, the yellow metal fails to extend Friday’s bounce off $1,852.80 to near $1,880. The reason could be traced to the traders’ confusion amid mixed clues concerning the coronavirus (COVID-19) and vaccines as well as a lack of confirmation on the Brexit deal and the tussle between the US Fed and Treasury.

XAU/USD

Overview
Today last price	1871.42
Today Daily Change	-1.53
Today Daily Change %	-0.08
Today daily open	1872.95

Trends
Daily SMA20	1889.36
Daily SMA50	1899.87
Daily SMA100	1909.75
Daily SMA200	1793.96

Levels
Previous Daily High	1879.85
Previous Daily Low	1860.94
Previous Weekly High	1899.14
Previous Weekly Low	1852.8
Previous Monthly High	1933.3
Previous Monthly Low	1860
Daily Fibonacci 38.2%	1872.63
Daily Fibonacci 61.8%	1868.16
Daily Pivot Point S1	1862.64
Daily Pivot Point S2	1852.34
Daily Pivot Point S3	1843.73
Daily Pivot Point R1	1881.55
Daily Pivot Point R2	1890.16
Daily Pivot Point R3	1900.46

Gold Weekly Forecast: Coronavirus vaccine optimism hurts XAU/USD

After failing to break above $1,900 at the start of the week, Gold spent the majority of the week under modest bearish pressure and dropped to $1,850 area before staging a rebound on Friday. Nevertheless, XAU/USD closed the second straight week in the negative territory around $1,870.

The upbeat Industrial Production and Retail Sales data from China revived hopes for a steady global economic recovery and provided a boost to market sentiment at the start of the week. Additionally, Moderna announced that its coronavirus vaccine candidate was 94.5% effective in the latest trials and noted that it will be seeking authorization for emergency use of the vaccine in the US in the coming weeks.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.