Gold Price News and Forecast: XAU/USD risks further falls amid ascending triangle breakdown
|Gold Price Analysis: XAU/USD to face an uphill task, with eyes on $1969 – Confluence Detector
Gold (XAU/USD) is wavering in a familiar range around $1950, looking for a strong catalyst for a range break out. The US dollar weakness amid US fiscal impasse and concerns over the economic recovery underpin the metal.
Meanwhile, the US-China tensions and correction in the US equities also buoy the sentiment around the safe-haven. However, the Fed's reluctance to further stimulus has limited the gold's attempts on the upside. How is gold positioned technically ahead of the Fed Chair Powell's multiple appearances this week? Read more...
Gold Price Analysis: XAU/USD risks further falls amid ascending triangle breakdown
Having faced rejection above $1950 on several occasions so far this Monday, Gold (XAU/USD) came under heavy selling pressure and fell nearly $10 in a matter of an hour.
The latest leg down in the yellow metal can be mainly attributed to a broad-based US dollar rebound, as the risk-aversion tightened its grip in Europe amid mounting coronavirus fears.
Markets also prefer to hold the US currency ahead of the Fed Chair Jerome Powell's speech due later on Monday.
From a near-term technical perspective, the price broke below the rising trendline support at $1945.58 last hour, confirming an ascending triangle breakdown on the hourly sticks.
The metal faced stiff resistance once again at the horizontal 100-hourly Simple Moving Average (HMA) at $1954.
At the moment, the price trades below all the major HMAs and remains poised to test the pattern target at $1915. Ahead of that level, last Thursday's low of $1932.88 will likely test the bears' commitment. Read more...
Gold: $1963 is the level to beat for the bulls
Gold (XAU/USD) trades in the $1950 area, similar to the Friday's close, as the yellow metal draws bids from broad-based US dollar weakness and the downbeat market mood. Coronavirus updates and Fed Chair Powell's speech are eyed on Monday, FXStreet's Dhwani Mehta reports.
Key quotes: "The sentiment remains sour amid resurgent coronavirus fears, especially after the UK is considering nationwide lockdown while Greece and Denmark announced new restrictions on Friday. Investors seek safety in gold, as they fear the fresh measures to contain the virus resurgence could temper the nascent global economic recovery. Meanwhile, the US dollar remains on the back foot, despite the risk-aversion, as the overhang over the US fiscal impasse combined with growing election risks continues to weigh." Read more...
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