Gold Price News and Forecast: XAU/USD rose considerably last week as the Fed announced a limitless bond-buying scheme

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD bounces from 2020 lows, hovering near $1600/oz

The bullion is trading in a very tight range above the 1614 support level and the main SMAs on the four-hour chart suggesting an upward bias in the medium term. Bulls remain in control as they can be setting up for break of the 1636 resistance en route to the 1660 level and 1700 figure if XAU/USD gathers enough steam. Support can emerge near 1614, 1600 and 1560 levels.

Gold has retraced all of the previous sell-off

The gold futures contract gained 0.18% on Friday, as it extended a short-term consolidation following Monday’s – Tuesday’s rally. The market reacted to the previous Sunday’s Fed unlimited Quantitative Easing announcement. Yellow metal has retraced all of the previous sell-off, as it got back close to March 9 medium-term high of $1,704.30. Since then, gold trades within the mentioned short-term consolidation.

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