- XAU / USD is up 0.09% as the last trading week of the year begins.
- Market sentiment is mixed, fueled by the omicron variant and transmissibility issues, despite being less lethal.
- XAU / USD Price Forecast: The weekly chart shows a neutral bias, although a descending triangle has formed, threatening to push prices towards $ 1.5060.
The oro (XAU / USD) Against the dollar it advanced modestly during the American session, trading at $ 1,809.01 at the time of writing this article. Ómicron’s problems over the weekend caused the cancellation of more than 3,000 flights, and poor liquidity conditions kept the market’s confidence fluctuating between winners and losers.
The yellow metal rises despite the strength of the US dollar
The yield on 10-year US Treasuries lateralized, clinging to the 1,484% level, a tailwind for the metal that is underperforming against the dollar. At the same time, the US dollar index, which tracks the value of the dollar against a basket of its rivals, is up 0.15% to 96.17, staying above 96.00 for the second week in a row.
Meanwhile, real US yields as of December 23 are at -1.47%, unchanged in the footsteps of the US 10-year Treasury yield.
In the night session, the yellow metal remained moderate in a narrow range of $ 1,802 – $ 1,812.40, in the absence of a catalyst, as financial markets entered the last week of the year. Represented by the 1-hour chart, XAU / USD’s downside move was limited by the double-zero psychological level and the 50-hour simple moving average (SMA), which is around $ 1,807, pushing the metal that not performing at current price levels.
XAU / USD price forecast: Technical perspective
The weekly gold chart shows that XAU / USD is neutral in value, as shown by weekly simple moving averages (SMAs) that reside below the pair’s price. However, from the perspective of the market structure, a series of successive higher highs and lows formed a descending triangle, a bearish formation, which if broken down, would push gold prices to the simple moving average ( 200-week SMA) at $ 1,569.17 but it would face some hurdles on the way down.
The first support would be $ 1,721.52, followed by the August 8 low at $ 1,687.19, followed by the 2021 daily low at $ 1,676.70, and then the aforementioned 200-week SMA at $ 1,569.17.
Technical levels
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