Gold Price News and Forecast: XAU/USD price has fallen 1.5% on Thursday

FXStreet Team FXStreet

Gold Price Analysis: Elliott Wave analysis shows that prices could be heading towards $1600

There has been lots going on over the past few sessions with both the ECB and Fed giving us updates. Without going into a long-winded rant about all money being worthless in this environment, it seems that both of the worlds biggest central banks have confirmed their relative forms of QE are here to stay for as long as they are needed. This also includes previous rounds which are going to be reinvested. Despite this fact, the markets seem to be latching on the theme that the economies are going to reopen soon but the indices are struggling today. A mixture of month-end flows and a worse than expected US jobless claims number (3,839K vs Exp 3,500K) sent equities tumbling with all major EU and US bourses trading lower despite a fairly healthy Asian session.

Gold in the balance of COVID-19 waves of global resurgence

Gold is currently trading at $1,684.28, -1.55% having travelled between a high of $1,721.94 to a low of $1,682.07. The pressure is on as market anxiety over COVID-19 started to dissipate in recent days on the notion that nations and some US states will be getting business back to work.

The risk profile in financial and commodity markets has taken a turn for the better of late and gold is suffering as a consequence. The precious metal has been unable to get above the 1750s and bulls have run out of steam.

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EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.