Gold rises toward $1520, hits three-week highs


  • XAU/SUD gains for the fourth day in-a-row, up $20 over the week. 
  • After finding support above $1480, now could test critical resistance around $1520. 

Gold continues to rise, extending weekly gains on Friday. Price peaked after the beginning of the American session at $1,517.99/oz, the highest since October 3.  The bullish momentum alleviated after approaching the $1,520 area and pulled back. As of writing trades at $1,512. 

The demand for the yellow metal remains elevated ahead of next week’s Federal Reserve meeting. The US central bank is expected to cut rates by 25bp. US yields are modestly higher today but not capping the upside in Gold. “A 25bp rate cut is currently priced in with more than 90% probability. Given that we expect the easing bias to be maintained, but without a pre-commitment to further reductions, the impact on the US treasury market should be limited”, said analysts at Danske Bank. 

Technicals offer a boost to XAU/USD

On Thursday Gold rose above $1,495 breaking the upper limited of a trading range from two weeks ago and clear the way to more gains. It also climbed above the 20-day moving average reinforcing the bullish technical outlook. 

Yesterday it closed clearly above $1500 and today rose further. Now the $1,515/20 is the critical resistance. A close on top could target $1,535. But if XAU/USD fails to rise above $1,520 the bullish tone would ease. Now $1,495 it the key short-term support, followed by the lower bottom of the mentioned range at $1,480. 

XAU/USD

Overview
Today last price 1512.92
Today Daily Change 9.62
Today Daily Change % 0.64
Today daily open 1503.3
 
Trends
Daily SMA20 1493.02
Daily SMA50 1505.19
Daily SMA100 1461.14
Daily SMA200 1379.63
 
Levels
Previous Daily High 1504.25
Previous Daily Low 1488.1
Previous Weekly High 1497.95
Previous Weekly Low 1477.15
Previous Monthly High 1557.03
Previous Monthly Low 1464.61
Daily Fibonacci 38.2% 1498.08
Daily Fibonacci 61.8% 1494.27
Daily Pivot Point S1 1492.85
Daily Pivot Point S2 1482.4
Daily Pivot Point S3 1476.7
Daily Pivot Point R1 1509
Daily Pivot Point R2 1514.7
Daily Pivot Point R3 1525.15

 

 

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