XAU/USD Current price: $1,984.55
- Lower US Treasury yields boost the yellow metal following weaker-than-expected US data.
- XAU/USD breaks above $1,975 and the 20-day SMA.
- Gold has erased last week's losses and is now looking at $2,000.
Spot Gold rose significantly on Thursday, resuming the upside. XAU/USD broke above the $1,975 resistance area and jumped to the highest level in more than a week, boosted by a weaker US Dollar and falling Treasury yields. The price rose more than $20, also driven by technical factors.
The US weekly Jobless Claims report showed Initial Claims at the highest level in nearly three months, reaching 231,000, which is above the market expectation of 220,000. Continuing Claims reached 1.865 million, the highest in almost two years. Another report indicated a larger-than-expected contraction in Industrial Production during October. These figures weighed only modestly on the US Dollar but pushed US yields further down and triggered a jump in Gold.
As the data continues to solidify the position that the Federal Reserve (Fed) is done raising interest rates, Gold continues to shine, while the US Dollar remains under pressure. The question for the future is how high the weekly close will be for XAU/USD. The US data due on Friday is unlikely to be a game-changer. The focus remains on a volatile bond market and risk sentiment.
XAU/USD short-term technical outlook
-638357562680967524.png)
Gold broke above the 20-day Simple Moving Average (SMA) at $1,974 and the $1,975 resistance area, rising to $1,987, the highest level since November 6. As long as the price remains above $1,974, the focus will be on the next strong resistance area seen at $1,992. A break above this area would likely see the yellow metal rise above $2,000.
The 4-hour chart shows positive signs ahead of the Asian session, suggesting that the upward trend might continue. Immediate support stands now at $1,975, followed by the 100-SMA and then a key uptrend line at $1,964. A slide below the latter would indicate the end of the current rally, suggesting a potential initial decline to $1,950.
Support levels: $1,974 $1,962 $1,954
Resistance levels: $1,992 $2,001 $2,010
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 stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
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.