Gold – XAU/USD Analysis - April 15, 2021

Symmetrical Triangle Pattern

During Thursday's Asian trading session, the safe-haven-metal succeeded in extending its overnight winning streak and drew some further bids around above the $1,740 level as the U.S. dollar remains bearish around a one-month low. The U.S. dollar was being pressured by the Federal Reserve's discussions that interest rates can stay low, making U.S. bond yields weaker and contributes to the gold gains. Meanwhile, the upbeat market mood, backed by the combination of factors, also played its major role in undermining the safe-haven U.S. dollar, which lends some additional support to the gold prices to stay bid. 

Furthermore, the yellow metal prices' upticks were further bolstered by the concerns over the Johnson & Johnson's vaccine. In the meantime, the back-to-back warnings from Beijing over the Hong Kong issue probes the market's upbeat mood, which was seen as one of the key factors that help the gold prices to put bids. Elsewhere, the fresh U.S. sanctions on Russia and Saudi Arabian interference of Houthi missiles and drones also question the market mood. Alternatively, backed by hopes of economic recovery and the expectations of U.S. stimulus, the upbeat market sentiment was seen as one of the key factors that kept the lid on any additional gains in the safe-haven-metal. 

At the moment, the precious metal gold is currently trading at 1,740.47 and consolidating in the range between 1,734.42 - 1,740.60 as the European Union stopped the Johnson & Johnson vaccine rollout. The case was similar to that of the AstraZeneca vaccine that suggests not to use further due to blood clotting side effects. This news also supported the safe-haven yellow metal prices on Tuesday.

Looking ahead, the market traders will keep their eyes on the various data as Thursday is busy with U.S. data, including retail sales data for March and weekly jobless data, which are due at 1230GMT. Apart from this, the U.S. dollar price movement will continue to play a vital role in the gold direction.

Gold Intraday Technical Level

Support Resistance

1730.36 1756.51

1713.78 1766.08

1704.21 1782.66

Pivot Point: 1739.18

Gold - XAU/USD - Technical Outlook 

The XAU/USD is trading with a choppy at 1,742 level, holding in between a narrow trading range of 1,749 - 1,733. On the 4-hour chart, the yellow metal gold continues to hold a symmetrical triangle pattern extending resistance at 1,749 and support at 1,733. A bullish breakout of this pattern opens room until the next resistance area of 1,758. On Tuesday, the 1,739 is working as an intraday pivot point level, and it may offer vital support to gold prices. The series of 20 and 50 periods EMA are neutral, extending mixed bias for gold. Gold continues to face a hard time violating the 1,739 support level, but the next support will prevail around 1,723 level once it does. Bullish bias dominates over 1,739 levels today, along with resistance levels at 1,758 and 1,766 levels. All the best!