Gold Price Analysis: XAU/USD heads for lowest weekly close since June despite Friday’s recovery

• Gold bounced on Friday, and managed to recover level above $1770.
• Higher US yields continue to pressure the yellow metal.

After staging a sharp recovery from the lowest levels in seven months, gold prices are higher on Friday. XAU/USD bottomed at $1760/oz during the Asian session and then rebound. It peaked at $1790 after the beginning of the American session.

Near the end of the week, the metal is hovering around $1780, about to post the lowest weekly close since July and down by 2.35%.

Still weak, but also showing positive signs

Gold was able to recover after testing level under the important technical level of $1765/70. A consolidation below would clear the way to more losses. Also, on Friday, XAU/USD could post the first daily gain after a week of consecutive declines. From a technical perspective, a consolidation above $1790 would improve the bullish outlook for the metal.

Still, the recovery seems limited, and the pressure continues to favor the downside. The decline of the US dollar and the improvement in risk sentiment was offset by rising US yield. On Friday, the 10-year US yield climbed to 1.35%, the highest level in a year.

Technical levels