Gold Price News and Forecast: XAU/USD started on the defensive

FXStreet Team FXStreet

Gold Price Analysis: XAU/USD breaches 100-day SMA for first since March

Gold looks south, having breached the widely-tracked 100-day simple moving average (SMA) support for the first time since March 23. The yellow metal fell by 1.67% on Wednesday and closed below the 100-day SMA, flipping the long-term technical support into resistance. The SMA is currently located at $1,887, and the metal is trading at $1,878 per ounce.

Wednesday's drop also marked a downside break of the ascending channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs.

Asia Market: Global markets tremble

Gold started on the defensive and racked up further losses. Initially, the USD was slightly firmer in response to Europe's falling equities on concerns over rising Covid-19 cases on both sides of the Atlantic. That seemed to provide a level of anxiety for gold investors. The bullion market is likely to be volatile until the elections; ultimately, the falls will be limited by easy global monetary policies.

USD/JPY holds pullback from 161.80 on hawkish BoJ-speak

USD/JPY is holding above 161.00 in the Asian session on Friday, on a retreat from its highest level since July 2024 set the previous day. Hawkish BoJ commentary and April Minutes affirm further rate hike expectations, offsetting the softer Japanese National CPI print and support the Japanese Yen as intervention fears loom.

AUD/USD attacks 0.7000 amid stronger US Dollar

AUD/USD attacks 0.7000 in the Asian session on Friday, remaining close to the weekly low, and seems poised to register modest weekly losses. The US Dollar sits near its highest level since May 2025 as the Fed's hawkish tilt overshadows optimism over the US-Iran peace deal, weighing on the pair.

Gold remains a lose-lose trade despite the US-Iran peace deal

Gold extends three-day losing streak below $4,200, eyes third straight weekly loss. The US Dollar sits at yearly highs amid hawkish Fed outlook, renewed Iran tensions. Technically, Gold remains vulnerable, with a retest of $4,000 likely on the cards.

Bitcoin weakens, Ethereum turns lower, XRP faces channel rejection

Bitcoin, Ethereum, and Ripple are trading under pressure on Friday as risk-off continues to weigh on the broader cryptocurrency market. BTC has fallen more than 4% so far this week, and ETH is extending losses, trading around $1,700. Meanwhile, XRP faces rejection at the upper boundary of its parallel downward channel, hinting at further correction.

Back above 100: Kevin Warsh’s first Fed meeting sparks US Dollar rally

The US Dollar Index did a phoenix comeback, rising from its ashes and reconquering 100. The reasons behind the US Dollar rally are pretty clear: the Memorandum of Understanding between the United States and Iran, and a hawkish Federal Reserve. Both events were long-awaited and much expected. However, the market reacted with surprise when there were no surprises at all.

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