Gold prices pick up on risk aversion to approach long-term highs at $1,765

XAU/USD regains lost ground after bouncing at $1,717 and reaches $1,740 area.
Gold appreciates on risk aversion as US-China tensions escalate.

Guillermo Alcala FXStreet

The precious metal appreciates on Friday, favoured by the risk-averse trading as the escalation of the Sino-US tensions have boosted demand for safe-haven assets. XAU/USD’s reversal from $1,755 highs on Thursday found support at $1,717 to bounce up and returning to $1,740 area, with eight-year highs, at $1,765 on sight.

Gold appreciates on geopolitical concerns

Bullion prices are marching higher, with equity index in red during Friday’s North American trading session. US President Donald Trump has stirred Sino-US tensions vowing with a strong reaction against China’s intention to pass new security legislation to curb protests in Hong Kong. This comes after the US government blocked chip supplies to Chinese Huawei.

Furthermore, China’s refusal to set a growth target for 2020 reveals the severe damage caused by the coronavirus shutdown in the world’s second economy. This decision has triggered a flight to safety which reflects in lower oil and stocks lower and firmer gold and US dollar.

XAU/USD drawing closer to the $1,765 peak

Gold prices are being capped now below $1,740 intra-day highs, with next potential resistance levels a $1,755 and then long-term highs at $1,765. On the downside, immediate support lies at $1,725 and below here $1,717 and $1,680.

XAU/USD key levels to watch

XAU/USD

Overview
Today last price	1735.96
Today Daily Change	8.25
Today Daily Change %	0.48
Today daily open	1727.71

Trends
Daily SMA20	1715.38
Daily SMA50	1660.28
Daily SMA100	1624.37
Daily SMA200	1558.64

Levels
Previous Daily High	1749.14
Previous Daily Low	1717.34
Previous Weekly High	1751.8
Previous Weekly Low	1690.05
Previous Monthly High	1747.82
Previous Monthly Low	1568.46
Daily Fibonacci 38.2%	1729.49
Daily Fibonacci 61.8%	1736.99
Daily Pivot Point S1	1713.65
Daily Pivot Point S2	1699.6
Daily Pivot Point S3	1681.85
Daily Pivot Point R1	1745.45
Daily Pivot Point R2	1763.2
Daily Pivot Point R3	1777.25

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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