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Gold holds near $4,600 resistance as the dollar sells off
XAU/USD was last around $4,582, with gold rallying alongside crypto after a US Treasury liquidity plan fueled concern over fiscal credibility.
Gold prices extended higher on Friday, with XAU/USD pushing toward the $4,600 resistance area, the top of the last six months trading range, as the US dollar weakened sharply, according to FXStreet.
FXStreet reports that Rabobank analysts linked the move to a US Treasury plan aimed at boosting liquidity for the repurchase of long term securities. The analysts noted that while lower Treasury yields usually weaken a currency through an interest-rate channel, this episode appeared different, with gold and crypto also rising, which they said points to worries about fiscal credibility and borrowing-cost management.
The outlet said XAU/USD traded around $4,582 while retaining a bullish near-term bias, although technical indicators showed the rally was starting to look stretched. FXStreet cited an RSI near 70 on the daily chart, a positive MACD with widening green histogram bars, and that the metal has breached the 200-day simple moving average, while the 200-day SMA near $4,514 is a key support level.
On levels to watch, FXStreet highlighted the horizontal cap near $4,590, potential next upside targets including $4,700 and May's high at $4,4773, and downside risk if price falls back below the 200-day SMA, which could expose $4,450 and an August 14 low near $4,310.
Latest closeGold $4,157.80 ▲0.4%