Gold Price News and Forecast: XAU/USD holds onto Friday’s recovery gains
Gold Price Forecast: XAU/USD bulls insist but not out of the woods yet
Despite a green day last Friday, Gold (XAU/USD) fell for the second straight week and held onto the critical $1850 support. Fresh calls for US fiscal stimulus kept the gold buyers alive, although the further upside remained elusive amid vaccine progress. US Treasury Secretary Steven Mnuchin on Friday hinted that the stimulus talks would continue just a day after halting Fed’s emergency lending program. The US dollar suffered alongside stocks, in the face of the Fed-Treasury clash, spiking COVID-19 cases and fresh lockdowns in the US cities, which lifted the sentiment around gold.
Gold Price Analysis: XAU/USD nears 200-hour SMA
Gold is currently trading near $1,872 per ounce, having nearly tested the 200-hour Simple Moving Average (SMA) of $1,876 a few minutes before press time. The buyers failed to establish a foothold above that average on Friday.
Despite the latest bounce from the long-held support of $1,850, the immediate bias remains neutral. That's because the hourly chart descending trendline is still intact. A break above that diagonal resistance would open the doors to $1,900.
Author
FXStreet Team
FXStreet
