Gold Price Analysis: XAU/USD bulls probed below $1,750 amid thin holiday trade
|- Gold pauses after two-day recovery, between $1,725 and $1,730.
- US dollar weakness, backed by bond buyers, favored gold upside.
- Good Friday holiday locks in the market moves.
- US NFP, Treasury yields become the key to watch.
Gold awaits fresh moves while keeping the latest run-up to around $1,730 during the early Good Friday in Asia. With most markets closed due to the international holiday, traders are likely waiting for markets in Japan and China to open for direction. However, major attention will be given to the US employment figures for March.
Bond moves are the key…
Although US President Joe Biden’s $2.25 trillion infrastructure spending plan gets criticism from the business lobby and Republicans, markets cheered upbeat US ISM Manufacturing PMI to portray the risk-on mood. Also favoring the sentiment could be upbeat vaccine news and unlocks in the UK and Australia.
However, fresh lockdowns in France and Canada join the Sino-American tussle, as well as fears of fading economic recovery to weigh on the mood.
Amid these plays, US Treasury yields dropped the most in five weeks whereas Wall Street benchmarks cheered another stimulus, as well as hints for a few more, while positing over 1.0% gains each. Among them, S&P 500 refreshed the record top by crossing the 4,000 mark.
Given the anticipated lack of market moves, gold is likely to remain subdued below the immediate resistance around $1,732. However, the dearth of liquidity can trigger wild spikes and hence traders should be careful during such times.
Also, the market fears concerning covid resurgence and China versus the West can favor the US dollar, due to its safe-haven demand, which in turn may test the latest run-up.
Additionally, US employment figures for March have high hopes and any disappointment should be enough during the holiday-thinned trading to recall gold sellers.
Technical analysis
Despite successfully crossing a downward sloping trend line from January 29, gold needs to surpass the immediate hurdle, a two-week-old resistance line around $1,732, to convince buyers. Alternatively, a pullback below the previous resistance near $1,720 should lure short-term sellers.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.