Gold Price Analysis: XAU/USD remains trapped between 50 and 200-DMA ahead of US data
- Gold awaits US data for a clear direction
- 50-DMA caps the upside, 200-DMA offers strong support.
- Daily RSI trades flat but in the bearish region.
Gold (XAU/USD) trades on the front foot this Friday amid dovish comments from the Fed Chief Powell.
However, gold’s further upside remains elusive, as the safe-haven demand for the US dollar is on the rise, with markets uncertain about the details of President-elect Joe Biden’s $1.9 stimulus package unveiled earlier in the Asian session.
Investors also turn cautious ahead of the critical US Retail Sales, especially after Thursday’s disappointing weekly Jobless Claims.
At the time of writing, gold trades at $1852.40, up 0.29% on the day, having found dip-demand at lower levels earlier this week.
Gold Price Chart: Daily
As observed in the daily chart, gold remains locked in a familiar range so far this week, with the upside attempts capped by the bearish 50-daily moving average (DMA), now at $1862.
Meanwhile, the upward-sloping 200-DMA at $1844 keeps the buyers hopeful. However, a sense of caution prevails, as the 14-day Relative Strength Index (RSI) still trends in the bearish region, now at 44.18.
The next relevant support is seen at Thursday’s low of $1829, below which the January 11 low of $1817 could be challenged.
Alternatively, acceptance above the 50-DMA hurdle could open doors for a test of the 21-DMA at $1882. Further up, the 100-DMA at $1888 would be on the buyers’ radars.
Gold Additional levels
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.