Gold Price News and Forecast: XAU/USD on the move
|Gold analysis: Passes March high
During the late hours of Thursday's trading, the price for gold reached above the 1,755.00 level, which is the high level of March. However, a follow-up surge did not occur. Instead, the commodity price declined after sideways trading in the 1,755.00 and 1,759.00 zone. Due to that reason, this zone is now marked on the chart as a potential resistance zone.
On Friday morning, the commodity price was trading above the previous resistance zone at 1,745.65/1,747.60. In addition, the zone was being approached by the 55-hour simple moving average, to which from a technical analysis perspective the creation of the Thursday surge was attributed. Read more...
Gold on the move
The precious metal, gold is set to record its first weekly gain in a long time. It seems like that bulls have finally returned to town as the price has cleared a major obstacle yesterday and that it broke above the 50-day SMA on the daily time frame. A lot of the upward move in the gold price is chiefly due to the weakness in the dollar index as it is failing to find any bid due to dovish narrative set by the Fed. Jerome Powell, the Fed Chairman, said yesterday any rise in inflation this year is likely to be temporary and the Fed isn’t worried about this. Remember, market players have been betting against the Fed for the last number of weeks as they believed that the Fed will have no choice but to throw the towel and accept that inflation is going to get out of control. As a result, they will have to begin start tapering their monetary policy. However, it is important to keep in mind that the Fed has so many tools in the monetary toolbox which the market players aren’t aware of. The Fed can control inflation without increasing its interest rate. Read more...
Gold Price Forecast: XAU/USD bulls fail ahead of double-bottom neckline resistance
Gold witnessed a modest pullback from the vicinity of the $1,760-65 resistance zone during the Asian session on Friday and eroded a part of the overnight gains to five-week tops. As investors digested a stubbornly dovish Fed, the US dollar index staged a goodish bounce from the 92.00 mark amid a modest pickup in the US Treasury bond yields. This, in turn, was seen as a key factor that exerted some downward pressure on the dollar-denominated commodity. Read more...
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