Gold Price Analysis: XAU/USD’s bearish bias intact while below 200-DMA

0
  • XAU/USD’s upside attempts remain capped by 200-DMA
  • Technical set up on the daily chart favors the bears.
  • Focus remains on US data, stimulus and vaccine news.

Gold (XAU/USD) fails to resist above the $1850 level once again, as sellers return in early European trading.

Despite the latest leg down, gold prices remain in a familiar range of around $1840-45 levels, awaiting fresh impetus from the US economic data.

The US dollar clings onto its recovery gains across its main rivals, as the risk-off action in the US stock futures weighs on the market mood amid ongoing Wall Street speculative trades and vaccine concerns.  

Gold Price Chart: Daily 

From a technical perspective, the XAU bears remain hopeful so long as the price makes a sustained move above the critical 200-daily moving average (DMA), now at $1851.

Gold bulls have failed to find acceptance above the latter over the past six trading sessions, leaving the downside risks intact in the metal.

Therefore, Thursday’s low of $1834 could be challenged en route the January 13 low at $1803. The Relative Strength Index (RSI) edges higher but remains the midline, backing the case for the sellers.

Alternatively, 50-DMA at $1857 could test the bulls’ commitment.

Gold Additional levels

 

Get the 5 most predictable currency pairs

About Author

Comments are closed.