· Gold Price Analysis: XAU/USD to find cushion at the $1700 level
Gold (XAU/USD) failed to sustain at weekly highs around $1740 on Thursday, ending the day in the red at $1724. On the final trading day of this week, XAU/USD bears are testing bullish commitments above $1700, as FXStreet’s Dhwani Mehta reports.
Key quotes
“The reflation theme is back in play, thanks to the upbeat remarks from US President Joe Biden, who talked up the vaccine campaign amid the $1.9 trillion stimulus passage. Therefore, gold could bear the brunt if the uptrend in the US rates resumes. On the macro front, the US PPI release will be eyed while the focus will continue to remain on the yield play.”
“Gold’s 4-hour chart shows that the price has pierced the critical support at $1717, which is the bullish 21-simple moving average (SMA). The $1700 round number could offer some cushion to the XAU bulls before they target the multi-month troughs at $1677.”
“The Relative Strength Index (RSI) has turned flat while holding above the midline, suggesting that the XAU buyers still remain hopeful.”
“Thursday’s high at $1739 could be probed again, above which the 100-SMA at $1745 remains on the buyers’ radars. The next stop for the bulls is seen at $1760, the March 1 high.”
· Gold Price Analysis: XAU/USD flirts with three-day lows, around $1710 area
Gold edged lower through the early European session and dropped to three-day lows, around the $1710-09 region in the last hour.
The precious metal extended the overnight retracement slide from the $1740 supply zone and witnessed some follow-through selling on the last trading day of the week. This marked the second straight day of a negative move and was sponsored by a combination of factors, though the cautious mood helped limit the downside.
It will now be interesting to see if the downtick marks the end of the recent bounce from multi-month lows or is seen as a buying opportunity. Traders now look forward to the US economic docket – featuring the February Producer Price Index and the preliminary estimate of the Michigan Consumer Sentiment Index for March – for a fresh impetus.
· Gold Price Forecast: XAU/USD bears testing bullish commitments above $1700
Gold (XAU/USD) failed to sustain at weekly highs around $1740 on Thursday, ending the day in the red at $1724. The rebound in the US Treasury yields from multi-day lows capped the recovery rally in the non-yielding gold. The returns on the markets rebounded, as the expectations of strengthening US economic recovery regained momentum after a strong jobs report. The number of Americans seeking jobless claim benefits dropped to a four-month low last week. Although the US dollar held onto the lower levels amid a record rally in Wall Street indices.
On the final trading day of this week, the reflation theme is back in play, thanks to the upbeat remarks from US President Joe Biden, who talked up the vaccine campaign amid the $1.9 trillion stimulus passage. Therefore, gold could bear the brunt if the uptrend in the US rates resumes. On the macro front, the US PPI release will be eyed while the focus will continue to remain on the yield play.
Gold’s four-hour chart shows that the price is testing the critical support at $1717, which is the bullish 21-simple moving average (SMA).
Thursday’s U-turn occurred after Gold bulls faced rejection below the 100-SMA at $1745.
The Relative Strength Index (RSI) has turned flat while holding above the midline, suggesting that the XAU buyers still remain hopeful.
To the upside, Thursday’s high at $1739 could be probed again, above which the 100-SMA remains on the buyers’ radars. The next stop for the bulls is seen at $1760, the March 1 high.
Alternatively, a breach of the 21-SMA could call for a test of the 50-SMA at $1713. The $1700 round number could offer some cushion to the XAU bulls before they target the multi-month troughs at $1677.
Reference: FXStreet
Thai
Eng