Gold Soars to $1,818: Indicators Suggest a Bullish Trend

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Gold Soars to $1,818: Indicators Suggest a Bullish Trend

The yellow metal gold is trading with a bullish bias at the 1,818 level, heading north towards the 1,822 resistance level.The WHO chief, Tedros Adh


  • The yellow metal gold is trading with a bullish bias at the 1,818 level, heading north towards the 1,822 resistance level.
  • The WHO chief, Tedros Adhanom Ghebreyesus, said that he was concerned that Omicron was highly transmissible and circulating.
  • Gold was on track to post its biggest annual decline since 2015, as it has fallen about 4% so far in 2021 because the global economies continue to recover.
Gold prices were closed at $1814.10 after setting a high of $1818.10 and a low of $1796.20. After declining for three consecutive sessions, GOLD reversed its course and turned green on Thursday to recover some of its previous losses. The US Dollar Index, which measures the greenback’s value against a basket of six major currencies, closed at 95.97 after recovering some of its previous losses.

At the same time, the US Treasury Yields dropped on Thursday and lost half of their previous session’s gains to drop to 1.51%. The main reason behind the precious metal surge was the drop in US Treasury yields from their one-month highs.Gold was on track to post its biggest annual decline since 2015, as it has fallen about 4% so far in 2021 because the global economies continue to recover from the impact of COVID-19; however, the prices of safe-haven gold declined this year despite the continual surge in coronavirus cases amid the rapid spread of the Omicron variant.

The World Health Organization has warned that a COVID tsunami was set to overwhelm healthcare systems as the record increase in the number of cases fueled by the Omicron variant dampened the New Year celebrations around the world once again. The governments of the United States, Denmark, France, and Britain were struggling to decide between anti-virus restrictions and the need to keep economies open, while the highly transmissible variant pushed cases to record high levels that had never been seen before.

The WHO chief, Tedros Adhanom Ghebreyesus, said that he was concerned that Omicron, which was highly transmissible and circulating at the same time as Delta, was leading to a tsunami of cases. The rising number of cases and a warning from the WHO raised gold prices over the uncertainty.

At 18:30 GMT, the unemployment claims dropped to 198K against the forecasted 205K and supported the US dollar on the data front. At 19:45 GMT, the Chicago PMI surged to 63.1 against the anticipated 61.9 and supported the US dollar. The favorable economic data pushed the dollar higher and limited the gains in precious metal prices.

Gold remained on the upside on Thursday despite moving towards posting its biggest decline in six years. 1809.47 is the pivot point.

Gold - XAU/USD Chart

Daily Technical Levels

Support Resistance
1800.84 1822.74
1787.57 1831.37
1778.94 1844.64
Pivot Point: 1809.47

Gold Technical Outlook – Three White Soldiers to Drive Uptrend

The yellow metal gold is trading with a bullish bias at the 1,818 level, heading north towards the 1,822 resistance level. Bullish crossover above 1,827 level can extend an uptrend until 1,833 level.

On the lower side, the XAU/USD may find immediate support at the 1,806 level, and a break below this level can expose gold price towards the 1,790 mark. Consider looking for a buy trade over 1,810 level to target 1,823 and 1,832. Good luck!



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