Gold fell below $2 000 first time in a week

Gold fell below $2 000 first time in a week

2020-08-12 • Updated

XAU/USD is decreasing for the third day in a row. What are the reasons?

What happened?

It all started from Friday’s NFP report. US non-farm payrolls and unemployment rate came out better than analysts expected. As a result, the US dollar surged, while gold dipped down. After the yellow metal’s value lost nearly $80, analysts became cautious, that it might be something bigger than just a short correction. Indeed, when one red candle followed another one, the market participants wouldn’t like to miss great opportunities to take profit. It leaded to the massive gold sell-off.

Moreover, the current risk-on sentiment added headwinds to XAU/USD. Trump launched an executive order of $400 per week of unemployment benefits. However, disputes over the whole stimulus package between Democrats and Republicans continue. Nevertheless, gold bears shrugged off those disputes and focused more on the overall risk-on sentiment.

Technical tips

On the 4-hour chart, we can see that the gold price has a pullback towards the $2 000 level after breaking it out. The broken support switched to the resistance. As a rule, the price bounces off the resistance and continues falling down. It should meet the next support at the $1 970 level, which it failed to cross during the period of the end of July – the beginning of August. If it manages to break down this strong support, it will open doors towards the next support at the low of July 30 at $1 950. On the flip side, if gold jumps above $2 000, it may surge to the resistance line at $2 035, which it has touched several times already. Follow further news on gold!

XAUUSDH4.png

LOG IN

Similar

How will the reporting season affect US indices?
How will the reporting season affect US indices?

Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.

Stocks to trade in July
Stocks to trade in July

When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.

Top Stocks to Trade this Earnings Season
Top Stocks to Trade this Earnings Season

The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera