- Gold regained traction on Friday and recovered a part of the previous day’s losses.
- The technical set-up supports prospects for a move to the $1931-33 supply zone.
- Sustained weakness back below the $1900 mark will negate the positive outlook.
Gold edged higher through the early North American session and refreshed daily tops, around the $1912 region in the last hour, recovering a part of the overnight slide to over one-week lows. Given that the precious metal showed some resilience below the $1900 mark, or support marked by a two-week-old ascending trend-line, the emergence of some fresh buying favours bullish traders.
The outlook is further reinforced by the fact that technical on hourly charts have again started moving in the positive territory. Moreover, oscillators on the daily chart – though have been correcting from higher levels – maintained their bullish bias. Hence, a subsequent move to the $1918 intermediate resistance, en-route the $1931-33 supply zone, looks a distinct possibility.
On the flip side, any meaningful pullback might continue to attract some dip-buying near the $1900 mark. This, in turn, should help limit the downside near the overnight swing low, around the $1895 region. That said, some follow-through selling will shift the bias back in favour of bearish traders and prompt some technical selling, paving the way for additional near-term weakness.
The XAU/USD might then turn vulnerable to accelerate the slide towards 100-day SMA support, around the $1880 region. The downward trajectory could further get extended towards the $1860-59 intermediate horizontal support en-route September monthly swing lows, around the $1849-48 region.
XAU/USD 4-hourly chart
-637390548585436705.png)
Technical levels to watch
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 drops to near 1.0600, awaits US inflation data
The EUR/USD pair remains under pressure on Wednesday, holding steady just above the 1.0600 level during Asian trading hours. This would mark the fourth consecutive day of losses for the Euro, as the pair continues to face downward momentum.
GBP/USD falls to near 1.2750 ahead of BoE Mann speech
GBP/USD extends its losing streak for the fourth successive session, trading around 1.2740 during the Asian hours on Wednesday. This downside of the pair is attributed to a stronger US Dollar amid optimism around the Trump trades.
Gold price sticks to gains above $2,600 amid some repositioning ahead of US CPI
Gold price staged a notable recovery from a nearly two-month low touched on Tuesday. Elevated US bond yields and a bullish USD might cap gains for the non-yielding XAU/USD. Traders now look forward to the crucial US consumer inflation figures for a fresh impetus.
US CPI data preview: Inflation expected to rebound for first time in seven months
The US Consumer Price Index is set to rise 2.6% YoY in October, faster than September’s 2.4% increase. Annual core CPI inflation is expected to remain at 3.3% in October. The inflation data could significantly impact the market’s pricing of the Fed’s interest rate outlook and the US Dollar value.
Five fundamentals: Fallout from the US election, inflation, and a timely speech from Powell stand out Premium
What a week – the US election lived up to their hype, at least when it comes to market volatility. There is no time to rest, with politics, geopolitics, and economic data promising more volatility ahead.
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.