Gold Price Analysis: The 200-day SMA forms strong resistance at $1,855
|Gold (XAU/USD) closed last week deep in the negative territory despite reclaiming $1,800 on Friday. According to FXStreet’s Eren Sengezer, gold's near-term outlook remains bearish.
Key quotes
“US President Biden’s administration kicked off negotiations with House Republicans on the aid bill and a positive outcome could help XAU/USD rebound as it would point out to an increase in the money supply.”
“$1,800 (psychological level) aligns as the initial support ahead of $1,785 (Feb. 4 low). With a daily close below the latter, the pair could extend its slide toward $1,765 (Nov. 30 low/starting point of December rally).”
“Resistances are located at $1,845 (Fibonacci 61.8% retracement of the latest uptrend/20-day SMA), $1,855 (200-day SMA) and $1,870 (Fibonacci 50% retracement).”
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.