Gold Price News and Forecast: XAU/USD recovering from the lows and finding some calm on Martin Luther King Day

XAU/USD: Gold bounces on stimulus hopes but facing strong technical barriers

Spot gold bounced from new 1 ½ month low ($1803) posted in early hours of Monday’s trading as comments from US Treasury nominee Janet Yellen that the US does not seek weaker dollar, slowed greenback’s recovery.
Expectations of new fiscal stimulus package would boost metal’s appeal as an inflation hedge and the US Federal Reserve unlikely to become more hawkish in coming months, would provide additional support to the metal’s price.

Potential recovery from two-week $1959/$1803 fall would face some strong obstacles en-route, as thick daily cloud (spanned between $1842 and $1865) already capped recovery attempts last week.
Surge through the cloud and close above its top would provide initial reversal signal, but bulls need to make first step on sustained break of $1842 pivot (200DMA / daily cloud base).

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Gold Price Analysis: XAU/USD at critical crossroads ahead of Biden's inauguration – Confluence Detector

The current stability could be the calm before the next storm around January 20. President-elect Joe Biden is set to enter the White House and kick off his term with a flurry of Executive Orders, on top of pushing the $1.9 trillion fiscal stimulus plan he already presented. 

How is XAU/USD positioned on the technical graphs?

The Technical Confluences Indicator is showing that the precious metal is hovering above $1,836, which is a strong support line. It is the convergence of the Simple Moving Average 5-1h, the SMA 5-15m, the Bollinger Band 15min-Middle, and the Fibonacci 38.2% one-week.

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EUR/USD extends losses below 1.21 amid sour market mood

EUR/USD has extended its falls under 1.21 as the risk-off mood and elevated US bond yields favor the dollar. The EU is pressing to accelerate its vaccination campaign. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.


GBP/USD tumbles below 1.39 as the dollar storms the board

GBP/USD has fallen sharply, trading below 1.39 and down some 350 pips from the highs. The US dollar picks up bids as the bond market rout seems to resume. BOE Governor Bailey expects a negative first quarter for the economy. 


XAU/USD bounces off multi-month lows, keeps the red below $1765 level

Gold witnessed some follow-through selling for the second consecutive session on Friday. Oversold RSI on the 1-hourly charts assisted the commodity to bounce off eight-month lows. Bearish oscillators on 4-hourly/daily charts support prospects for a further near-term decline.

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Dogecoin bullish failure could cause a 20%-to-40% correction

Dogecoin price has dipped under support at $0.055, opening up the possibility of a steeper correction. Transactional data shows investors who purchased 20.70 billion DOGE from $0.050 to $0.055 are underwater.

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US Dollar Index climbs to session tops near 90.50, looks to data

The greenback, when measured by the US Dollar Index (DXY), regains composure and reclaims the 90.00 barrier and (well) above at the end of the week.

US Dollar Index News