XAU/USD Current price: $2,029
- XAU/USD rose after being able to hold above $2,010.
- The stronger Dollar keeps the upside limited, despite lower yields.
- Gold needs to rise above $2,045 to improve the short-term outlook.
Gold spot rose, offering signs of stabilization after the sharp reversal from record highs above $2,130 to $2,008 (Dec 5 low). It is consolidating near the $2,030 support level, on the back of lower Treasury yields but lacking upside momentum amid a stronger US Dollar.
Data released in the US on Wednesday included the ADP employment report, which showed an increase in private payrolls by 103,000, below the market consensus of 130,000. The Unit Labor Cost data indicated a decline of 1.2% during the third quarter. Despite these figures pointing to a more balanced labor market and less inflationary pressures, the US Dollar remained resilient.
More US employment data is due on Thursday, with the weekly Jobless Claims, and on Friday, the critical Nonfarm Payrolls report will be released. While the numbers are expected to show further softness, the impact on the US Dollar has been limited so far and has not significantly altered the positive momentum. Even the decline in the 10-year Treasury yield to 4.12%, the lowest since early September, has not provided a boost to Gold. The yellow metal remains in a bullish long term trend but is far from the all-time highs it reached just two days ago.
XAU/USD short-term technical outlook
-638374842293901843.png)
Gold managed to post a daily gain after a sharp decline. The recovery came after successfully defending the $2,010 area. Currently, the price is moving within a range between $2,035 and $2,020. The bearish momentum has been persistent, but signs of stabilization have started to emerge.
On the 4-hour chart, the technical indicators are biased to the downside but lack strong conviction. The price is holding below the 20-Simple Moving Average, (SMA) which is situated at $2,043. The risk appears tilted to the downside, with a break below $2,020 exposing $2,010 and potentially the $2,000 zone. On the upside, a recovery above $2,050 would change the short-term bias to neutral or positive.
Support levels: $2,020 $2,010 $1,990
Resistance levels: $2,031 $2,045 $2,072
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 bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.