- Gold is flat at the end of the New York session amid higher yields on US Treasuries.
- XAU / USD Technical Outlook: Neutral-bearish, unless gold bulls hit $ 1800.
Gold (XAU / USD) has moderated during the New York session, trading above $ 1788 at time of writing. The appetite for riskier assets fueled by the approval of the US FDA to allow Pfizer and Merck to use the pills to fight Covid-19 is driving up the US dollar to the detriment of safe-haven gold.
In the night session, gold was subdued in a tight range, between $ 1788-1795. At the beginning of the European session, the metal rose, stalling its rise near $ 1,800, then fell towards $ 1,786.32 amid a rise in US Treasuries. Furthermore, it fell below the critical swing high on December 8 at $ 1,792.95, opening the door for further losses that could push the XAU towards a retest of $ 1,780.
XAU / USD Price Forecast: Technical Outlook
The XAU / USD daily chart represents indecision, as shown by the almost “horizontally” daily moving averages (DMAs) contained in the $ 1787-1800 range. From a market structure perspective, unless the gold bulls claim the $ 1,792.95 zone, the bias is bearish, although to resume the trend the USD bears would need a daily close below the pivot low of 16. December at $ 1775.40.
On the way south, the first support would be the December 16 low at $ 1775.40. A break below that level would put downward pressure on the precious metal, exposing crucial support areas. The next target would be the December 2 low of $ 1,761.72, followed by the December 15 low of $ 1,752.44.
To the upside, the first resistance would be the December 8 high at $ 1,792.95. A clear breakout of that level would immediately expose $ 1,800, later targeting the September 3 swing high of $ 1,834.
Technical Levels
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