Gold Price Analysis: XAU/USD to extend the downside on a close below 21-DMA at $1756
|This Friday, gold seems to have resumed the downside, as the Treasury yields attempt a bounce across the curve. The $1756 21-daily moving average (DMA) support holds the key for XAU/USD, as FXstreet’s Dhwani Mehta notes.
See – Gold Price Analysis: XAU/USD to resume its decline towards $1600 before long – CE
A fresh batch of US consumer spending and consumption data awaited
“The US dollar holds steady, awaiting fresh cues from the Core PCE and personal spending data. Gold traders will continue to closely follow the risk trends, especially in light of the preliminary growth figures from Germany and the Eurozone. If the GDP numbers disappoint, it could reinforce risk-aversion across the board, knocking off higher-yielding assets such as US rates, in turn, putting a floor under gold.”
“US President Joe Biden's additional push for a $1.8 trillion social stimulus package along with the infrastructure spending proposal also keeps the gold buyers hopeful.”
“The price of gold tested the upward-sloping critical 21-daily moving average (DMA), then at $1756, which is the line in the sand for the optimists. A daily closing below the latter could extend the bearish momentum towards the 50-DMA at $1745.”
“The recovery attempts could likely remain capped around $1785-$1790, static resistance. Further up, the critical 100-DMA barrier at $1799 could be back in play.”
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