Gold Price News and Forecast: XAU/USD consolidates recent gains above $1,900

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD to test key 50-DMA hurdle on its way to $2000

Following the settlement at two-week highs of $1930, Gold (XAU/USD) remains poised to extend the bullish momentum into a fresh week, courtesy of a classic technical breakout on the daily chart.

On Friday, the metal finally delivered a daily closing above the critical upside barrier at $1911, the confluence of the 21-daily moving average (DMA) and falling trendline resistance, yielding a falling wedge breakdown.

Gold Price Analysis: XAU/USD consolidates recent gains above $1,900

Gold takes rounds to $1,928/29, following the day-start weakness to $1,926.40, during the pre-Tokyo open Asian trading on Monday. The yellow metal rose to the highest since September 21 on Friday as the broad US dollar weakness, coupled with the risk-on mood, favored the buyers. However, the recent headlines concerning the American stimulus, Brexit and the coronavirus (COVID-19) question the bullion’s further upside. Even so, a lack of major catalysts and a long weekend at the US limit the downside momentum.

On Friday, US President Donald Trump’s fresh bid for the coronavirus (COVID-19) stimulus, worth the $1.8 trillion, propelled global risk markets. The same dimmed the US dollar’s safe-haven demand and dragged the US dollar index (DXY) to the lowest in three weeks.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD struggles for direction amid USD gains

EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.

GBP/USD drops to daily lows near 1.3360

Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.

Gold losses momentum, challenges $4,300

Gold now gives away some gains and disputes the key $4,300 zone per troy ounce following earlier multi-week highs. The move is being driven by expectations that the Fed will deliver further rate cuts next year, with the yellow metal climbing despite a firmer Greenback and rising US Treasury yields across the board.

Litecoin Price Forecast: LTC struggles to extend gains, bullish bets at risk

Litecoin (LTC) price steadies above $80 at press time on Friday, following a reversal from the $87 resistance level on Wednesday. Derivatives data suggests a bullish positional buildup while the LTC futures Open Interest declines, flashing a long squeeze risk.

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Aave Price Forecast: AAVE primed for breakout as bullish signals strengthen

Aave (AAVE) price is trading above $204 at the time of writing on Friday and approaching the upper boundary of its descending parallel channel; a breakout from this structure would favor the bulls.