Gold Price Forecast: XAU/USD bounces hard off $1760 and aims higher

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  • Gold climbs to weekly highs above $1,760.
  • The dollar loses ground on all fronts despite risk aversion.
  • Wall Street futures point to opening with losses around 0.70%.

Gold rose nearly $20 from the Asian session low and recently hit a one-week high of $1,763, buoyed by a weak dollar and despite a rebound in sovereign bond yields.

At the start of the week, XAU/USD fell to test Friday’s low at $1745, but managed to hold above. After hours of trading steadily, it jumped in the European session on general dollar weakness.

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The yellow metal is trading at $1760, in positive territory and for the moment holding on to last week’s high. The very short-term tone is bullish for the metal. Below $1755 it could ease while just below $1750 it could change. Key support remains at $1745. If the rally continues, XAU/USD will face resistance at $1765 and then $1775.

Dollar down, metals up

The weakness of dollarpossibly in anticipation of a Federal Reserve less aggressive, remains important support for gold. It is also true for silver which bounced up more than 50 cents from $21.00 to $21.60.

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The markets are cautiously watching the demonstrations in China against the restrictions by the COVID-19, which are contributing to a decline in the equity markets.

technical levels

XAU/USD

Panorama
Last Price Today 1763.55
Today’s Daily Change 7.22
Today’s Daily Change % 0.41
Today’s Daily Open 1756.33
Trends
20 Daily SMA 1720.96
SMA of 50 Daily 1686.9
SMA of 100 Daily 1712.08
SMA of 200 Daily 1799
levels
Previous Daily High 1761.2
Minimum Previous Daily 1746.03
Previous Weekly High 1761.2
Previous Weekly Minimum 1721.23
Maximum Prior Monthly 1729.58
Minimum Prior Monthly 1617.35
Daily Fibonacci 38.2% 1755.41
Daily Fibonacci 61.8% 1751.82
Daily Pivot Point S1 1747.84
Daily Pivot Point S2 1739.35
Daily Pivot Point S3 1732.67
Daily Pivot Point R1 1763.01
Daily Pivot Point R2 1769.69
Daily Pivot Point R3 1778.18

Source: Fx Street

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