XAU/USD Current price: $1,802.63
- The American dollar is down, despite US government bond yields soaring.
- Global stocks traded mixed as investors prepare to close the year.
- XAU/USD trimmed part of its intraday losses and recovered above the 1,800 threshold.
Spot gold plummeted below the 1,800 level as demand for the American currency picked up during European trading hours, extending its decline to $1,789.38 a troy ounce during the US session. The greenback temporarily strengthened across the FX board ahead of Wall Street’s opening but gave up pretty fast, with the bright metal recovering up to the current 1,802 price zone.
Position adjustments ahead of the year-end result in some assets trading without rhyme or reason, as the greenback is down while US government bond yields are firmly up, with the yield on the benchmark 10-year Treasury note hitting 1.55%. Most Asian and European indexes closed in the red, but Wall Street is up, although gains are limited.
Gold price short-term technical outlook
The daily chart for the XAU/USD pair shows that it remains in the red, down for a second consecutive day. The lower low skews the risk to the downside, and a break below the mentioned daily low should signal a steeper decline. In the mentioned time frame, the pair bottomed around the 20 and 100 SMAs, both converging with modest bullish slopes. Technical indicators head marginally lower but remain above their midlines.
The 4-hour chart shows that the metal bounced from a flat 100 SMA, while the current recovery is meeting sellers around a mildly bearish 200 SMA. Technical indicators are recovering within negative levels, reflecting the ongoing advance rather than hinting at further gains ahead.
Support levels: 1,789.30 1,778.20 1,766.40
Resistance levels: 1,808.10 1,820.35 1,831.10
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD reaches fresh weekly lows with ECB, dismal US data
EUR/USD trades near a fresh weekly low of 1.0468 after the European Central Bank trimmed interest rates as expected, and the United States published discouraging employment and inflation-related data. The US Dollar finds additional support in a dismal market mood.
GBP/USD nears 1.2700 on broad US Dollar demand
GBP/USD is pulling further back towards the 1.2700 level in the European session on Thursday as traders turn cautious. The pair reverses earlier gains as the US Dollar gathers strength following dismal United States data.
Gold pierces $2,700 as investors assess US news, ECB decision
XAU/USD pierced the $2,700 threshold and remains under pressure as investors diggest US figures and the European Central Bank monetary policy announcement. Inflation in the US at wholesale levels rose by more than anticipated in November, according to the latest Producer Price Index release.
-637336005550289133_Medium.jpg)
Chainlink surges amid World Liberty purchase, Emirates NBD partnership and CCIP launch on Ronin network
Chainlink price surges around 15% on Thursday, reaching levels not seen since mid-November 2021. The rally was fueled by the Donald Trump-backed World Liberty Financial purchase of 41,335 LINK tokens worth $1 million on Thursday.
Can markets keep conquering record highs?
Equity markets are charging to new record highs, with the S&P 500 up 28% year-to-date and the NASDAQ Composite crossing the key 20,000 mark, up 34% this year. The rally is underpinned by a potent mix of drivers.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.