Gold Price Forecast: Will XAU/USD recapture 200 DMA? Focus on EU/ US PMIs
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UNLOCK OFFER- Gold price keeps recovery mode intact, as US Dollar retreats with US Treasury bond yields.
- Markets turn cautious ahead of the Eurozone and US preliminary PMI reports.
- Gold price closed above the critical daily resistance line at $1,891. What’s next?
Gold price is sustaining the recovery from five-month lows, looking to recapture the $1,900 mark early Wednesday. A minor pullback in the United States Dollar (USD) and the US Treasury bond yields is helping Gold price find some support. All eyes now remain on the global preliminary PMI reports for fresh trading impetus in Gold price.
EU/US PMIs to drive risk sentiment, Gold price
Gold price is consolidating the latest gains just shy of the $1,900 mark, as risk-off flows return to Asia this Wednesday, despite the renewed US-China trade optimism. Reuters cited US Commerce Department late Tuesday, noting that US Commerce Secretary Gina Raimondo met with the Chinese Ambassador, as well as the Vice Foreign Minister, Xie Feng and had a ‘productive discussion’ ahead of her next week's trip to China.”
Asian stocks take cues from the mixed close on Wall Street overnight, as a jump in the US Treasury bond yields made other riskier assets less attractive. Multiple factors have contributed to the recent upsurge in the US Treasury bond yields to 16-year highs, including an increase in the US Treasury issuance, Fitch's credit downgrade and concerns China will dump Treasuries to support the Yuan.
Investors also stay unnerved ahead of the key Manufacturing and Services PMI reports from the Euro area and the US due later in the day. The S&P Global US PMI is likely to show the factory sector remained in contraction this month. The global PMI data will help gauge the risks of a recession worldwide while driving the broader market sentiment. Worsening business conditions globally are likely to intensify risk-aversion and boost the US Dollar’s safe-haven demand, motivating the Greenback to resume the uptrend at the expense of Gold price.
Further, earnings results from the US chipmaker due late Wednesday are likely to have a significant impact on risk sentiment. Gold traders also remain wary of the US banking jitters, especially after S&P joined Moody's to downgrade multiple regional US banks. In other news, Swiss Gold exports fell 2% in July from June, keeping the Gold price rebound in check.
Gold price technical analysis: Daily chart
Gold price managed to settle Tuesday above the descending trendline resistance, then at $1,891, as it moved away from multi-month troughs. Gold buyers now need acceptance above the $1,900 round figure to take on the upward-sloping 200-Daily Moving Average (DMA) at $1,909.
A sustained move above the 200 DMA barrier will open doors for a test of the $1,920 round figure.
The 14-day Relative Strength Index (RSI) is inching higher but stays below the 50 level, limiting the upside attempts in Gold price.
On the downside, the immediate support is seen at the abovementioned descending trendline resistance-turned-support, now at $1,885, below which a test of the $1,870 static support will be on the cards.
- Gold price keeps recovery mode intact, as US Dollar retreats with US Treasury bond yields.
- Markets turn cautious ahead of the Eurozone and US preliminary PMI reports.
- Gold price closed above the critical daily resistance line at $1,891. What’s next?
Gold price is sustaining the recovery from five-month lows, looking to recapture the $1,900 mark early Wednesday. A minor pullback in the United States Dollar (USD) and the US Treasury bond yields is helping Gold price find some support. All eyes now remain on the global preliminary PMI reports for fresh trading impetus in Gold price.
EU/US PMIs to drive risk sentiment, Gold price
Gold price is consolidating the latest gains just shy of the $1,900 mark, as risk-off flows return to Asia this Wednesday, despite the renewed US-China trade optimism. Reuters cited US Commerce Department late Tuesday, noting that US Commerce Secretary Gina Raimondo met with the Chinese Ambassador, as well as the Vice Foreign Minister, Xie Feng and had a ‘productive discussion’ ahead of her next week's trip to China.”
Asian stocks take cues from the mixed close on Wall Street overnight, as a jump in the US Treasury bond yields made other riskier assets less attractive. Multiple factors have contributed to the recent upsurge in the US Treasury bond yields to 16-year highs, including an increase in the US Treasury issuance, Fitch's credit downgrade and concerns China will dump Treasuries to support the Yuan.
Investors also stay unnerved ahead of the key Manufacturing and Services PMI reports from the Euro area and the US due later in the day. The S&P Global US PMI is likely to show the factory sector remained in contraction this month. The global PMI data will help gauge the risks of a recession worldwide while driving the broader market sentiment. Worsening business conditions globally are likely to intensify risk-aversion and boost the US Dollar’s safe-haven demand, motivating the Greenback to resume the uptrend at the expense of Gold price.
Further, earnings results from the US chipmaker due late Wednesday are likely to have a significant impact on risk sentiment. Gold traders also remain wary of the US banking jitters, especially after S&P joined Moody's to downgrade multiple regional US banks. In other news, Swiss Gold exports fell 2% in July from June, keeping the Gold price rebound in check.
Gold price technical analysis: Daily chart
Gold price managed to settle Tuesday above the descending trendline resistance, then at $1,891, as it moved away from multi-month troughs. Gold buyers now need acceptance above the $1,900 round figure to take on the upward-sloping 200-Daily Moving Average (DMA) at $1,909.
A sustained move above the 200 DMA barrier will open doors for a test of the $1,920 round figure.
The 14-day Relative Strength Index (RSI) is inching higher but stays below the 50 level, limiting the upside attempts in Gold price.
On the downside, the immediate support is seen at the abovementioned descending trendline resistance-turned-support, now at $1,885, below which a test of the $1,870 static support will be on the cards.
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