Gold Price News and Forecast: XAU/USD holds weekly support, eyes a 38.2% Fibo retracement

FXStreet Team FXStreet

Gold Price Analysis: Looks to stabilize around $1550 after Fed-led wild ride

Having witnessed a volatile early Asian session, gold (futures on Comex) is stabilizing near the mid-1550s, as investors await fresh catalysts for the next direction in the prices.

The yellow-metal opened with a $45 bullish opening gap this Monday, as traders sold-off the greenback across its main competitors, responding to the surprise rate cut delivered by the US Federal Reserve (Fed) late Sunday.

The dollar sank in tandem with the US Treasury yields, as the demand for the US bonds rose, with markets unwilling to buy into the Fed rate cut decision that is said to cushion the blow of the coronavirus impact on the economy.

XAU/USD

Overview
Today last price	1547.39
Today Daily Change	17.03
Today Daily Change %	1.11
Today daily open	1530.36

Trends
Daily SMA20	1624.02
Daily SMA50	1589.04
Daily SMA100	1535.33
Daily SMA200	1499.05

Levels
Previous Daily High	1598.08
Previous Daily Low	1504.72
Previous Weekly High	1703.4
Previous Weekly Low	1504.72
Previous Monthly High	1689.4
Previous Monthly Low	1547.56
Daily Fibonacci 38.2%	1540.38
Daily Fibonacci 61.8%	1562.42
Daily Pivot Point S1	1490.69
Daily Pivot Point S2	1451.03
Daily Pivot Point S3	1397.33
Daily Pivot Point R1	1584.05
Daily Pivot Point R2	1637.75
Daily Pivot Point R3	1677.41

Chart of the week: Gold holds weekly support, eyes a 38.2% Fibo retracement

The return of risk appetite was adverse to gold prices, suffering a flight to cash to pay-up for margin calls mid-week. On Friday, the nail in the coffin came from US President Donald Trump declaring a national emergency and allowing more than $40 billion of FEMA funds to deal with the COVID crisis.

The move sent stocks much higher and US treasuries lower, pressuring yields and the US higher, subsequently taking down gold prices to a weekly support line. Gold reverted to the levels seen during the last bout of liquidity selling in late February, around $1,560/oz and then dropped all the way to a low of $1,504.34/oz (just above the 200-DMA, $1,497) as investors sold winners to generate liquidity and cover losses.

EUR/USD weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.