Gold Price News and Forecast: XAU/USD erases gains despite dollar’s weakness

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD boosted amid weaker USD, eyes retest of $1850s

Spot gold (XAU/USD) prices have rallied into the low $1840s on Thursday amid further USD weakness, with the precious metal recovering from a bout of post-US equity cash open weakness that saw prices drop into the low $1820s at worst levels. As the spot FX market close approaches at 22:00GMT, gold trades with gains of roughly 0.6% or slightly over $10.

A combination of the usual themes (US fiscal stimulus hopes, vaccine optimism and expectations for a strong global recovery in 2021) have kept USD on the back foot on Thursday, pushing the Dollar Index to lows around 90.50.

XAG/USD

Overview
Today last price	24.05
Today Daily Change	0.03
Today Daily Change %	0.12
Today daily open	24.02

Trends
Daily SMA20	24.05
Daily SMA50	24.05
Daily SMA100	24.89
Daily SMA200	20.61

Levels
Previous Daily High	24.33
Previous Daily Low	23.55
Previous Weekly High	24.4
Previous Weekly Low	22.34
Previous Monthly High	26.01
Previous Monthly Low	21.9
Daily Fibonacci 38.2%	24.03
Daily Fibonacci 61.8%	23.84
Daily Pivot Point S1	23.6
Daily Pivot Point S2	23.19
Daily Pivot Point S3	22.82
Daily Pivot Point R1	24.38
Daily Pivot Point R2	24.75
Daily Pivot Point R3	25.16

Gold Price Analysis: XAU/USD erases gains despite dollar’s weakness

Gold pulled back from weekly highs and dropped to $1823/oz, reaching a fresh daily low. It then rebounded, and as of writing, it trades at $1830, around the same level it closed on Wednesday. The rally in XAU/USD from multi-month lows appears to be losing strength even as the US dollar tumbles across the board. The DXY dropped to 90.48, the lowest level in two years.

The area around $1845, slightly below the $1850 level that was a key support prior to the sell-off to $1765, capped the upside. The band $1845/50 is a key resistance that if broken, should clear the way to more gains.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.