Gold Price Analysis: XAU/USD to attempt a bounce to $1884
|In Tuesday’s trading so far, gold price is consolidating the previous losses, finding some support from the retreat in the US Treasury yields. As FXSteet’s Dhwani Mehta notes, gold’s technical setup suggests a lack of clear directional bias, with US data in focus.
XAU/USD bears lack conviction ahead of US Retail Sales
“If risk-aversion deepens going forward, the US dollar could likely see a revival in the safe-haven bids, which will accelerate the decline in gold price.”
“The focus now shifts towards the US Retail Sales data, with a disappointment likely to ease the inflationary concerns, boosting odds for the Fed’s tapering announcement while rendering gold-negative.”
“The bulls could look to retest the trendline support, now at $1884 if the recovery momentum gathers steam in the day ahead. Ahead of that the $1870 round number and Monday’s high of $1878 needs to get cleared.”
“If the daily lows of $1858 give way, the downside could resume towards the 200-Daily Moving Average (DMA) at $1840 cannot be ruled out.”
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