Gold Price News and Forecast: XAU/USD could snowball past its latest 9-month low
|Gold Price Forecast: Uptick might still be seen as an opportunity for XAU/USD bears
Gold lacked any firm directional bias on Friday and seesawed between tepid gains/minor losses, consolidating its recent losses to nine-month lows. The US dollar got a strong lift after Fed Chair Jerome Powell on Thursday dismissed concerns about the recent sharp rise in long-term yields. The already stronger got an additional boost following the release of the upbeat US monthly jobs report, which, in turn, was seen as a key factor that weighed on the dollar-denominated commodity.
The headline NFP showed that the US economy added 379K jobs in February. Adding to this, the previous month's reading was also revised higher to 166K from 49K reported earlier and the unemployment rate edged lower to 6.2% from 6.3% previous. The data reinforced the narrative of strong sequential recovery and pushed the yield on the benchmark 10-year US government bond above 1.60%, or fresh over one-year tops. This was seen as another factor that undermined the non-yielding yellow metal. Read more...
Gold technical analysis: XAU/USD could snowball past its latest 9-month low
Gold’s negative tendencies are picking up again after the yellow metal found some footing around the level of 1,687, logging a nine-month low, ahead of the significant support zone of 1,660-1,682. The gold scale seems to be tilting increasingly negative, as the bearish Ichimoku lines, which have controlled the commodity from the level of 1,876, are continuing to curb improvements in the price.
The falling 50- and 100-day simple moving averages (SMAs), and their recent bearish crossovers of the 200-day SMA, appear to be bolstering the doom and gloom in the precious metal. Read more...
Gold is trying a small recovery in oversold conditions
Gold trying a small recovery in oversold conditions. First resistance at 1705/08 butabove 1710 allows a recovery to 1722/26. Watch for a high for the day. Shorts needstops above 1729. Holding first resistance at 1705/08 keeps us in a bear trend targeting 1694/90 beforea retest of strong support at 1685/80. A low for the day likely again. A break lowerhowever targets the 100 week moving average at 1650/45.
Silver holding below strong resistance at 2540/50 keeps the outlook negative totarget 2525/15 & 2475/65, eventually as far as 2430/20. A selling opportunity at 2540/50 with stops above 2575. A break higher meets strongresistance at 2510/20. Read more...
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