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 appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.