Gold Price News and Forecast: XAU/USD holds onto Friday’s recovery gains

FXStreet Team FXStreet

Gold Price Forecast: XAU/USD bulls insist but not out of the woods yet

Despite a green day last Friday, Gold (XAU/USD) fell for the second straight week and held onto the critical $1850 support. Fresh calls for US fiscal stimulus kept the gold buyers alive, although the further upside remained elusive amid vaccine progress. US Treasury Secretary Steven Mnuchin on Friday hinted that the stimulus talks would continue just a day after halting Fed’s emergency lending program. The US dollar suffered alongside stocks, in the face of the Fed-Treasury clash, spiking COVID-19 cases and fresh lockdowns in the US cities, which lifted the sentiment around gold.

Gold Price Analysis: XAU/USD nears 200-hour SMA

Gold is currently trading near $1,872 per ounce, having nearly tested the 200-hour Simple Moving Average (SMA) of $1,876 a few minutes before press time. The buyers failed to establish a foothold above that average on Friday.

Despite the latest bounce from the long-held support of $1,850, the immediate bias remains neutral. That's because the hourly chart descending trendline is still intact. A break above that diagonal resistance would open the doors to $1,900.

160.80: Japanese Yen remains close to nearly two-year lows

USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.

Australian Dollar remains in positive territory after paring recent gains

AUD/USD pares its daily gains, remaining in the positive territory and trading around 0.7010 during the European hours. The pair appreciated as the Australian Dollar received support from prevailing hawkish sentiment surrounding the Reserve Bank of Australia’s policy outlook.

Gold retreats below $4,300 as USD benefits from hawkish Fed

Gold (XAU/USD) stays on the back foot in the European session and trades below $4,300. Although easing tensions in the Middle East help XAU/USD limit its losses, the broad-based USD strength in the Fed aftermath causes bulls to turn hesitant.

Bitcoin slips below $64,000 as hawkish Fed stance weighs on risk appetite

Bitcoin remains under pressure, extending its correction, trading below $64,000. The US Federal Reserve left interest rates unchanged but struck a hawkish tone on Wednesday, dampening the risk sentiment.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

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