Gold Price News and Forecast: XAU/USD downtrend will start if it drops below 1836 level

FXStreet Team FXStreet

Higher yields hit gold, but for how long?

The price of gold remains at $1,850, and the key drivers are higher bond yields and a stronger risk appetite.

Last week, the yellow metal tanked below $1,900 again, and it hasn't rebounded since the plunge – instead, the price of gold has stayed at around $1,850.

What happened? The main driver of the recent weakness in the precious metals market has been the Democratic victory in the Georgia Senate elections. Thanks to this trifecta, the Democrats have taken control of the White House, the House of Representatives, and the Senate. Consequently, there are lower chances of a political gridlock in Washington and higher chances of smooth cooperation between Congress and the incoming administration of Joe Biden. So, the expectations of additional economic support have risen, thereby strengthening hopes for a quicker economic recovery. Read more...

Gold: Downtrend will start if it drops below 1836 level

Uptrend scenario

An uptrend will start as soon, as the market rises above resistance level 1845, which will be followed by moving up to resistance level 1857.

Downtrend scenario

An downtrend will start as soon, as the market drops below support level 1836, which will be followed by moving down to support level 1827. Read more...

Gold Price Analysis: XAU/USD's path of least resistance appears down, eyes on Powell, Biden – Confluence Detector

Gold (XAU/USD) is licking its wounds after tumbling $20 in a quick move earlier in the Asian trades. Reports that a bigger-than-expected US stimulus plan worth $2 trillion is due to be announced by President-elect Joe Biden knocked-off the US Treasuries, fuelling a rebound in the US dollar and Treasury yields.

The expectations of a higher US fiscal stimulus plan are likely to keep the bounce in the Treasury yields intact. Therefore, the risks remain skewed to the downside in gold in the lead up to the US weekly jobs data and the Fed Chair Powell's speech. Although a bounce cannot be ruled out after the sharp move to the downside. Read more...

Author

FXStreet Team

FXStreet

EUR/USD rebounds from session lows, stays below 1.1650

EUR/USD is recovers modestly from session lows but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD sticks to losses near 1.3350 in the European session on Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh havem demand ahead of the US Jobless Claims data.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Three reasons to be bearish on Bitcoin

Bitcoin is holding up well taking into account the uncertainty stemming from the Middle East. Despite this week’s rally, the long-term outlook remains bearish. Here are three reasons why I think the storm for the largest cryptocurrency isn't over yet.

Markets attempt to rally on positive news from Iran

There’s been an abrupt change in sentiment this morning, European stock markets are higher and oil and gas prices are moderating, after comments from Iran’s deputy minister about pre-conflict talks between Iran and the US.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.