Gold erases more than $15 this week, will the selloff extend?


  • Gold looks to post its lowest weekly close of the year.
  • Broad USD strength weighs on the pair.
  • Precious metal struggles to capitalize on risk-off flows.

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

The fact that the XAU/USD pair failed to hold above the critical $1300 mark, where the 100-day moving average is located, last week attracted technical sellers and caused the bearish momentum to gather strength. From a technical standpoint, sellers are likely to remain in control of the pair's price action unless it makes daily close above $1300 in the near-term.

Moreover, gold, as a traditional safe-haven, struggled to find demand in the first half of the week after the upbeat macroeconomic data releases from China, which eased concerns over a long-lasting slowdown in the world's second-biggest economy, boosted the risk appetite. Although next week's calendar won't be featuring any data from China, any positive headlines surrounding the U.S. - China trade conflict could have a significant impact on the market sentiment and force the pair to continue to push lower.

On the other hand, with major European currencies coming under heavy selling pressure in the second half of the week, the greenback gained traction and put additional weight on the pair's shoulders. The US Dollar Index recovered last week's losses and is now looking to close above 97.30. Chicago Fed's National Activity Index and existing home sales data from the U.S. on Monday will be looked upon for fresh impetus.

Technical levels to consider

XAU/USD

Overview
Today last price 1274.43
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 1274.43
 
Trends
Daily SMA20 1294.71
Daily SMA50 1303.99
Daily SMA100 1290.01
Daily SMA200 1249.22
Levels
Previous Daily High 1277.72
Previous Daily Low 1271.35
Previous Weekly High 1310.7
Previous Weekly Low 1288.7
Previous Monthly High 1327.8
Previous Monthly Low 1280.1
Daily Fibonacci 38.2% 1275.29
Daily Fibonacci 61.8% 1273.79
Daily Pivot Point S1 1271.28
Daily Pivot Point S2 1268.13
Daily Pivot Point S3 1264.9
Daily Pivot Point R1 1277.65
Daily Pivot Point R2 1280.88
Daily Pivot Point R3 1284.03

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD accelerates its rebound to the 1.0930 region, focus remains on US election

EUR/USD accelerates its rebound to the 1.0930 region, focus remains on US election

Further selling pressure continues to hurt the US Dollar and lends extra support to EUR/USD, motivating it to flirt with the area of four-week peaks past 1.0930, as the US election remains under way.

EUR/USD News
GBP/USD approaches 1.3050 on weaker Dollar, US election

GBP/USD approaches 1.3050 on weaker Dollar, US election

Further optimism around the British pound and the broad risk complex lends extra legs to GBP/USD and sends it to new multi-day highs near the 1.3050 zone as investors continue to closely follow the developments around the US election.

GBP/USD News
Gold extends consolidative phase as US election result looms

Gold extends consolidative phase as US election result looms

Gold attracts dip-buyers after touching a one-week low on Tuesday but remains below $2,750. The benchmark 10-year US Treasury bond yield stays in positive territory above 4.3% as markets eye US election exit polls, limiting XAU/USD's upside.

Gold News
Crypto markets brace for volatility in tight race between Trump and Harris

Crypto markets brace for volatility in tight race between Trump and Harris

The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets. 

Read more
US election day – A traders’ guide

US election day – A traders’ guide

Election day volatility: Brace for potential wild market swings. Election days bring opportunities, but also risks. Unclear results can increase volatility further.

Read more
Best Forex Brokers with Low Spreads

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.

Read More

Forex MAJORS

Cryptocurrencies

Signatures