Gold Price Analysis: XAU/USD trades under 50-week SMA
Gold (XAU/USD) is trading near $1,808 per ounce at press time, having failed to keep gains above the 50-week Simple Moving Average (SMA) hurdle at $1,815 early Monday.
Last week’s rejection at the trendline falling from August and November highs, coupled with the below-50 reading on the weekly chart Relative Strength Index, suggests the path of least resistance is to the downside.
As such, a re-test of Thursday’s low of $1,785 looks likely. A violation there would expose the Nov. 30 low of $1,764. A move above the weekly chart descending trendline is needed to confirm a reversal higher.
Gold Price Forecast: XAU/USD bulls insist on US stimulus optimism but upside appears limited
Gold (XAU/USD) staged an impressive bounce from two-month lows on Friday, although ended the week deep in the red above the $1800 mark. Gold tumbled to $1785 on Thursday amid the relentless surge in the US dollar across its main competitors alongside the Treasury yields, in light of the relative strength of the US economic recovery. However, the XAU bulls regained control on Friday, as mixed US employment data cast clouds over the economic optimism, which downed the greenback. The world’s biggest economy added a meager 49K jobs last month despite the unemployment rates ticking down to 6.3% in the reported month.
