Gold Price News and Forecast: XAU/USD mildly heavy below $1,750, looks to US-China tension for clues

25 May 2020, 04:15 by FXStreet Team

Gold Price Analysis: XAU/USD mildly heavy below $1,750, looks to US-China tension for clues

Gold prices drop to $1,731, print 0.20% loss, intraday low of $1,730.37, by the press time of Tokyo open on Monday. Although fresh risk-off sentiment, helped by the US-China fight over Hong Kong, offered bids to the bullion on Friday, buyers seem to step back amid a lack of major push from the US President Trump.

China’s move towards enacting national security legislation in Hong Kong gains a major criticism from the Western world while the US policymakers remain on the top of dissenters.

Gold Price Analysis: Some daily & weekly chart technical signals point to a retracement

The weekly chart is showing a massive three-wave divergence on the Relative Strength Index indicator (RSI). This is sometimes a sign that the price might be starting to pull back from its mammoth uptrend in recent times.

The USD 1800.00 level did look like the target in this bull run but there could always be a small retracement on the way to the major level. in the other weekly chart below this one, I have colour coded the support levels from the last consolidation at the highs. USD 1676.78 is the next major support on the downside.