Gold rallies to 1-1/2 week tops, approaching $1600 mark


  • Gold gained some strong follow-through traction for the third consecutive session on Tuesday.
  • The Fed’s unlimited QE weighed heavily on the USD and provided a strong boost to the metal.

Gold maintained its strong bid tone through the early European session and was last seen trading near 1-1/2 week tops, just below the $1590 region.

The precious metal built on its recent bounce from the $1450 support area, or YTD lows, and continued gaining strong positive traction for the third consecutive session on Tuesday.

The Fed announced unprecedented measures to buy unlimited amounts of Treasury bonds and mortgage-backed securities to support the economy struggling from the coronavirus pandemic.

The extraordinary array of programs helped ease concerns over tightening liquidity and was aimed to keep borrowing costs at low levels, which eventually underpinned the non-yielding yellow metal.

Meanwhile, the latest move also halted the global rush to cash, which prompted some aggressive US dollar long-unwinding trade and provided an additional boost to the dollar-denominated commodity.

The strong intraday positive momentum seemed rather unaffected by a goodish recovery in the global risk sentiment, which tends to dampen demand for traditional safe-haven assets, including gold.

Tuesday's strong follow-through momentum could further be attributed to some technical buying, all against the backdrop of the overnight sustained back through the $1527-30 horizontal resistance.

A sustained move beyond the $1600 round-figure mark will reinforce the bullish set-up and set the stage for a further near-term appreciating move, possibly back towards the $1638-40 supply zone.

Technical levels to watch

XAU/USD

Overview
Today last price 1583.97
Today Daily Change 31.19
Today Daily Change % 2.01
Today daily open 1552.78
 
Trends
Daily SMA20 1590.68
Daily SMA50 1582.94
Daily SMA100 1535.74
Daily SMA200 1504.26
 
Levels
Previous Daily High 1561.22
Previous Daily Low 1482.74
Previous Weekly High 1561
Previous Weekly Low 1451.3
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1531.24
Daily Fibonacci 61.8% 1512.72
Daily Pivot Point S1 1503.27
Daily Pivot Point S2 1453.77
Daily Pivot Point S3 1424.79
Daily Pivot Point R1 1581.75
Daily Pivot Point R2 1610.73
Daily Pivot Point R3 1660.23

 

 

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

AUD/USD met support near 0.6200… for now

AUD/USD met support near 0.6200… for now

AUD/USD regained the smile and charted humble gains for the first time after three straight daily declines, managing to revisit the mid-0.6200s following the weaker US Dollar.

AUD/USD News
EUR/USD looked unfazed by the ECB’s rate cut

EUR/USD looked unfazed by the ECB’s rate cut

EUR/USD posted humble gains around the 1.0430 zone on Thursday as investors largely bypassed the widely anticipated rate cut by the ECB, re-shifting their attention to the upcoming US PCE readings.

EUR/USD News
Gold looking for higher highs beyond $2,800

Gold looking for higher highs beyond $2,800

Further gains allow Gold to hit a record top in levels just shy of the key $2,800 mark per ounce troy on Thursday. The move higher in the yellow metal came in tandem with the offered stance in the Greenback and safe-haven inflows in response to persistent threats of US tariffs,

Gold News
Litecoin ETF gets acknowledged by SEC, LTC could stretch its rally to $186

Litecoin ETF gets acknowledged by SEC, LTC could stretch its rally to $186

Litecoin (LTC) gained over 15% on Thursday following the United States (US) Securities and Exchange Commission's (SEC) acknowledgment of Canary Capital's Litecoin exchange-traded fund (ETF) 19b-4 filing.

Read more
The ECB cuts rates as its voyage to neutrality continues

The ECB cuts rates as its voyage to neutrality continues

The European Central Bank has cut interest rates again by 25bp and looks set to continue the current rate cut cycle. Even without having it fully telegraphed in recent weeks, today’s ECB decision to cut policy interest rates by 25bp is no surprise. 

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025