Gold Price News and Forecast: XAU/USD – risk rally on Friday causes gold to erase weekly gains

FXStreet Team FXStreet

Gold: US dollar strength takes a toll on the recovery moves below $1,700

Gold prices register mild losses of 0.05% on a day while trading near $1,683 during the early Monday. Although the recent risk aversion wave seems to flirt with the bullion buyers, the broad US dollar strength exerts a downside pressure on the safe-haven.

The fresh rush to risk-safety could be attributed to the surge in the coronavirus (COVID-19) related death figures from the US and the UK. Also supporting the yellow metal could be the People’s Bank of China’s (PBOC) rate cut.

XAU/USD

Overview
Today last price	1682.2
Today Daily Change	-1.42
Today Daily Change %	-0.08
Today daily open	1683.62

Trends
Daily SMA20	1638.62
Daily SMA50	1613.85
Daily SMA100	1569.03
Daily SMA200	1526.76

Levels
Previous Daily High	1718.99
Previous Daily Low	1679.7
Previous Weekly High	1747.82
Previous Weekly Low	1679.7
Previous Monthly High	1703.27
Previous Monthly Low	1451.3
Daily Fibonacci 38.2%	1694.71
Daily Fibonacci 61.8%	1703.98
Daily Pivot Point S1	1669.22
Daily Pivot Point S2	1654.81
Daily Pivot Point S3	1629.93
Daily Pivot Point R1	1708.51
Daily Pivot Point R2	1733.39
Daily Pivot Point R3	1747.8

Gold Forecast: Risk rally on Friday causes gold to erase weekly gains

After closing the previous week with strong gains, the troy ounce of the precious metal extended its rally and touched its highest level since November of 2012 at $1,747 on Tuesday but struggled to preserve its bullish momentum. The XAU/USD pair stayed relatively quiet on Wednesday and Thursday but came under strong bearish pressure on Friday to end the week virtually unchanged around the $1,690 handle.

On Thursday, US President Donald Trump presented guidelines to reopen the economy while highlighting that it will be a gradual process. "A national shutdown is not a sustainable long-term solution," Trump noted and unveiled the details of the three-phase process, reviving hopes of a return to normality.

EUR/USD remains firm, targets 1.2000

EUR/USD carried over Monday’s momentum, pushing up toward the proximity of the key 1.2000 area, a level not seen since June 2021. The ongoing leg higher reflects continued selling pressure on the US Dollar, with the broader risk backdrop still supportive and investors once again zeroing in on tariff-related risks coming out of the White House.

GBP/USD loses some momentum ahead of1.3800

GBP/USD continues to grind higher on Tuesday, climbing toward the 1.3800 handle and setting fresh multi-month highs as broad-based US Dollar weakness remains the dominant theme prior to Wednesday’s FOMC event.

Gold picks up pace, hovers around $5,100 zone

Gold is holding onto a positive tone, reclaiming the area near $5,100 per troy ounce and maintaining its uptrend well in place for yet another day on Tuesday. The yellow metal continues to draw support from a soft US Dollar, as well as lingering uncertainty around trade policy and wider geopolitical risks, all preceding the Fed’s interest rate decision.