XAU / USD still below $ 1800, limited in both directions

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  • Gold is still struggling to hold above $ 1800, still retaining important short-term support.
  • Fall in equity markets and rise in yields complicate the picture.

Gold is losing ground on Friday moderately. The price failed to return above $ 1800 and fell to $ 1790, the low in two days before bouncing back to $ 1799. It trades at $ 1795, with no clear direction for the day.

In the short term, XAU / USD is still supported by an uptrend line that is passing near $ 1785. The break of this line would point to further weakness ahead, with a possible fall to the $ 1,770 area. To the upside, $ 1800 is the first resistance and then $ 1810. If it asserts above $ 1813, the next target is $ 1820, before medium-term resistance around $ 1833.

A moderate rise in the dollar against most of its rivals, coupled with a rebound in Treasury yields, is limiting the chances of a gold advance. The expectation of announcements from the Federal Reserve next week could continue to play an important role, contributing to the lack of direction in the metal.

On Friday, the personal income and spending report in the US will be published, which includes the important underlying price index of personal consumption expenditure. There will also be consumer confidence data. They will be of the last economic figures before the meeting of the FOMC next Tuesday and Wednesday.

Technical levels

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