Gold Price Forecast: XAU/EUR trims some weekly losses, steady at around €1,570

• After jumping from weekly losses, gold advances almost 1% amid the US reporting the first Omicron variant case.
• The market sentiment has dampened on the report of the first US Omicron COVID-19 case, US equities dropped.
• XAU/EUR: Has an upward bias, though it would need a daily close above €1,590 to extend its gains. 

Gold (XAU/EUR) vs. the euro advances as Wall Street enters the last hour of the New York session, up some 0.75%, trading at €1,573 at the time of writing. Investors’ worries seem to be confirmed, as the first COVID-19 Omicron case in the US has been detected. That said, a sell-off in US equities is underway, with the three major indices posting losses between 0.63% and 1.15%. 

In the overnight session XAU/EUR, pare some Tuesday’s losses, witnessing a jump from €1,561 up to €1,570, but as the Asian session began, gold spiked through the 50-hour simple moving average (SMA), peaking at €1,583, followed by a dip towards the €1,570 area.

The rise in XAU/EUR is also due to weak economic data from the Eurozone, particularly Germany. Retail Sales for October shrank 2.9% on a yearly basis, worse than the 0.3% contraction estimated. Contrarily, the monthly basis number fell 0.3%, better than the 1.9% decrease expected,
In the meantime, the German 10-year Bund yield is falling two basis points, sitting at -0.35%, boosting the yellow metal prospects against the single currency. 

XAU/EUR Price Forecast: Technical outlook

The XAU/EUR daily chart depicts that trimmed some losses as we head towards the Wall Street close. Further, it is worth noting that gold found a strong support area near the June 1 swing high at €1,567 previous resistance-turned-support, some €10 above the 50-day moving average, lying at €1,556. Furthermore, the daily moving averages (DMA’s) with an upslope reside well below the spot price, signaling that XAU bulls are in charge.

In the outcome of extending Wednesday’s gains, the first support would be the November 30 high at €1,590. Breach of the latter could pave the way for further gains. The following resistance would be the €1,600 psychological level, followed by the November 18 cycle low previous support-turned-resistance at €1,633.

On the flip side, the first support would be the 50-DMA at €1,556. The break of the previous-mentioned would expose essential support areas, like the 100-DMA at €1,538, followed by the confluence of 200-DMA and the November 3 low, between the €1,515-19 range.