Gold Price News and Forecast: XAU/USD's bears looking for a discount

FXStreet Team FXStreet

Gold Price Analysis: Bears noting old support for a discount

In the recent good news in markets, the price of the yellow metal has come under renewed pressure. The yellow metal has completed a 38.2% Fibonacci retracement of the weekly bull trend and has closed below the level on a daily basis. The following is a top-down analysis which illustrates where the next opportunity could be on a retest of an old support structure.

Gold Price Analysis: Consolidation at critical weekly lows, bears looking for a discount

The price of gold has been on the back foot this week, breaking below the psychological $1,850s area, plummeting to a fresh weekly low of $1,800.40. Meanwhile, with the Dow above 30,000 and the S&P500 closing at a fresh all-time high this week, there is limited upside for gold in the near-term due to the combination of the vaccine news and the beginning of the Biden transition.

Today, the spot market is consolidated between $1,805.99 and $1,818.23 where it meets the old July resistance and Thanksgiving holidays in the US. ''The recent capitulation in gold will likely mark the end of the consolidation phase,'' analysts at TD Securities explained.

EUR/USD trims gains, reclaims 1.1600 and beyond

Following an earlier drop to yearly lows around 1.1530, EUR/USD now manages to recoup part of the ground lost and reclaim the area above 1.1600 the figure in the latter part of the NA session on Tuesday. Meanwhile, the pair’s marked retracement comes in response to the unabate march norht in the US Dollar, always propped up by the intense flight-to-safety environment amid the deteriorating geopolitical landscape in the Middle East.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.