XAU/USD remains sideways above $1,800 despite a rebound in risk-on profile – Crypto News – Crypto News
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XAU/USD downside is slowing as price corrects from fresh lows XAU/USD downside is slowing as price corrects from fresh lows

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XAU/USD remains sideways above $1,800 despite a rebound in risk-on profile – Crypto News

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  • Gold price is still sideways above $1,800.00 despite a gradual recovery in the risk-appetite theme.
  • The US Dollar Index has dropped sharply below 104.30. after recording a fresh four-day high of 104.56.
  • The Federal Reserve’s higher interest rates have resulted in a decline in Pending Home Sales.

Gold price (XAU/USD) is displaying back-and-forth moves marginally above the psychological resistance of $1,800.00 in the Asian session. The precious metal is displaying a lackluster performance despite a correction in the US Dollar Index (DXY) in the early trade. The US Dollar Index has slipped firmly below 104.30 after recording a fresh four-day high of 104.56 on Wednesday.

Meanwhile, S&P500 futures are delivering hopes of revival after a two-day sell-off. Also, risk-perceived currencies are regaining traction as investors are shrugging-off uncertainty about a spike in Covid-19 cases in China. The 10-year US Treasury yields have trimmed to near 3.86%, following the footprints of the US Dollar Index.

Amid the festive week, the economic calendar has nothing firm to offer, however, the release of the United States Pending Home Sales data on Wednesday has displayed the consequences of higher interest rates by the Federal Reserve (Fed). The economic data dropped by 4% to its lowest in 20 years on a monthly basis for November as transactions dropped after the fed pushed the interest rate to 4.5%.

gold technical analysis

Gold price is auctioning in a neutral channel on a two-hour scale that indicates a volatility contraction due to the absence of critical economic events. The precious metal has picked up strength after dropping to near the 100-period Exponential Moving Average (EMA) at $1,802.20. Also, the 200-EMA at $1,793.35 is aiming higher, which indicates that the upside bias is still solid.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals that the Gold price is awaiting a fresh trigger for a decisive move.

Gold two-hour chart

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