Gold Technical Analysis: XAU\USD rally hits pause as losses linger

Uncertainty surrounding Trump’s COVID illness resulted in a brief rally in gold to levels above 1,900.
Declines are likely to resume in the new week, as highlighted by the retracing RSI.

$Gold Technical Analysis: XAU\USD rally hits pause as losses linger$

John Isige FXStreet

Gold rallied significantly following the news that the US President, Donald Trump, had tested positive for COVID-19. The uncertainty saw stocks in the United States and Asia tank, with some even erasing gains in the recent past. The precious metal traded marginally above 1,900, allowing investors to hedge against the stock market.

XAU/USD closed the trading on Friday at 1,897, following a retreat from levels slightly above 1,900. The asset is likely to continue with the retreat on Monday, especially with the Relative Strength Index retracing after hitting pause at the midline.

XAU/USD daily chart

On the other hand, the Moving Average Convergence Divergence (MACD) highlights the possibility of consolidation taking precedence. However, if losses continue, the MACD may confirm the downtrend with a bearish divergence. The formation of a descending triangle shows the possibility of a breakdown to 1,800 coming into the picture.

It is worth mentioning that if XAU/USD bounces off the triangle support, the bearish case to 1,800 will be invalidated. Gains above the triangle resistance could pave the way for action above the 50-day Simple Moving Average (SMA). Gold bullish case to 2,000 is within reach but awaiting confirmation as long as the price steps above the 50 SMA.

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

GBP/USD declines to near 1.3500 as US-Iran tensions rise

The GBP/USD pair declines to near 1.3500 during the early European trading hours on Wednesday. Ongoing tensions in the Middle East provide some support to a safe-haven currency such as the US Dollar against the British Pound. All eyes will be on the US August jobs report later on Friday.

EUR/USD weakens below 1.1600; further consolidation cannot be ruled out

The EUR/USD pair loses traction to near 1.1575 during the early European session. The US Dollar strengthens against the Euro amid hawkish Federal Reserve stance and escalating Middle East geopolitical tensions. Traders will keep an eye on the Eurozone Retail Sales and US employment data, which are due on Friday.

Gold: Hawkish Fed prospects drag further below $4,300

Gold extends its decline on Wednesday, facing enormous pressure due to surging United States Treasury Yields and rising oil prices. In Asian trade on Wednesday, 10-year US Treasury Yields hit a record high at 4.81%, the highest level seen since November 2023. In Wednesday’s session, investors will keep an eye on the US ADP Employment Change data for August.

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

Top 3 Price Prediction: BTC, ETH, XRP under pressure as momentum indicators flag early bearish signals

Bitcoin, Ethereum, and Ripple remain under pressure, with technical indicators suggesting early weakening momentum across the top three cryptocurrencies following massive gains in August. BTC shows early bearish signals, while ETH has extended its pullback after rejection near $2,500. Meanwhile, XRP is consolidating below key support, keeping the outlook cautious.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.