Gold Price Forecast: Depressed amid a better market mood
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFERXAU/USD Current price: $1,784.55
- The American dollar seesaws alongside US government bond yields.
- Poor US employment figures ended up boosting Wall Street.
- XAU/USD neutral in the near term bears lead as long as below 1,803.
Gold trades with modest losses on Monday, reverting its early strength. The bright metal gapped higher at the daily opening and hit an intraday high of $1,787.79 a troy ounce, currently trading at around $1,784.00. The dollar gained a firmer tone following Wall Street’s opening, as speculative interest moves past the disappointing employment figures posted last Friday. The US managed to create 210K new jobs in November, according to the Nonfarm Payrolls report.
The soft number has taken off some pressure on stocks, as Wall Street suffered from speculation of a tighter monetary policy in the country. US indexes are firmly up on Monday, with the DJIA up over 500 points at the time being. Meanwhile, the yield on the US 10-year Treasury note hovers around 1.40%, up from an intraday low of 1.37%, providing a mild boost to the American currency.
Gold price short-term technical outlook
Gold remains subdued, not far from its November low at $1,758.81 a troy ounce, the immediate support level. Technically speaking the bright metal is at risk of falling, as the daily chart shows that XAU/USD remains below all of its moving averages, with the 100 and 200 SMAs converging directionless at around 1,792.00. Technical indicators have bounced modestly from their recent lows, but remain well into negative levels without clear directional strength.
The near term picture is neutral, as the 4-hour chart shows that technical indicators are stuck around their midlines, as the metal hovers around a flat 20 SMA. The longer moving averages remain above the 1,800 figure, slowly gaining bearish strength.
Support levels: 1,758.80 1,745.20 1,734.90
Resistance levels: 1,792.00 1,803.85 1,810.65
XAU/USD Current price: $1,784.55
- The American dollar seesaws alongside US government bond yields.
- Poor US employment figures ended up boosting Wall Street.
- XAU/USD neutral in the near term bears lead as long as below 1,803.
Gold trades with modest losses on Monday, reverting its early strength. The bright metal gapped higher at the daily opening and hit an intraday high of $1,787.79 a troy ounce, currently trading at around $1,784.00. The dollar gained a firmer tone following Wall Street’s opening, as speculative interest moves past the disappointing employment figures posted last Friday. The US managed to create 210K new jobs in November, according to the Nonfarm Payrolls report.
The soft number has taken off some pressure on stocks, as Wall Street suffered from speculation of a tighter monetary policy in the country. US indexes are firmly up on Monday, with the DJIA up over 500 points at the time being. Meanwhile, the yield on the US 10-year Treasury note hovers around 1.40%, up from an intraday low of 1.37%, providing a mild boost to the American currency.
Gold price short-term technical outlook
Gold remains subdued, not far from its November low at $1,758.81 a troy ounce, the immediate support level. Technically speaking the bright metal is at risk of falling, as the daily chart shows that XAU/USD remains below all of its moving averages, with the 100 and 200 SMAs converging directionless at around 1,792.00. Technical indicators have bounced modestly from their recent lows, but remain well into negative levels without clear directional strength.
The near term picture is neutral, as the 4-hour chart shows that technical indicators are stuck around their midlines, as the metal hovers around a flat 20 SMA. The longer moving averages remain above the 1,800 figure, slowly gaining bearish strength.
Support levels: 1,758.80 1,745.20 1,734.90
Resistance levels: 1,792.00 1,803.85 1,810.65
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.