Gold Outlook: XAU/USD Sidelines After Nine-year Highs, Aims Next for Fourth Consecutive Weekly Gain

Gold uptrend takes a breather on Thursday, while there’s no clear direction with prices playing between $1,804 to $1,811.

The bulls appear to be taking a load off, after a nine-year high from $1,756 to $1,818, in the last three days.

However, regardless of the overnight retreat from multi-year highs and the sluggish exchange seen in recent hours, the yellow metal is still higher near 2% on a week-to-date measure. If it reaches above Monday’s GMT open at $1,784 until Friday’s close, what will happen is a fourth consecutive weekly gain – the longest winning record since December 2019.

Price Outlook

Optimism for gold is seen in its fourth straight weekly gain, with the rising number of COVID-19 cases in the United States, having the world’s largest economy. Additional cynicism may come from the record of US spending shortage and its rising conflict with China. Mike Pompeo, the US Secretary of State, even reported on Tuesday about the visa constraints on some Chinese authorities.

Ultimately, it is the first time that the gold has crossed over 70 in its 14-day relative strength index since February. Currently, the charts still show an uptrend, with key levels to watch at around 1794.86 and 1821.37.

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