Gold Price News and Forecast: XAU/USD struggled for a firm direction and remained confined in a range on Wednesday
|Does gold want to move lower?
Gold’s slight rally might be getting some people excited, but appearances can be deceiving. USDX action hints at gold really wanting to move lower.
The yellow metal has climbed, but only with lacklustre energy. If the USD Index is not rising, then gold should really be shooting up and breaking new monthly highs, but it isn’t. Readers have been asking what’s happening and some have been concerned with gold’s apparent strength. So, let’s break it down.
History tends to rhyme and what happened before, will – to some degree - happen again. Gold is not immune to this concept, and the current implications are bearish.
Gold Price Analysis: XAU/USD remains confined in a range above 100-hour SMA
Gold extended its sideways consolidative price moves through the mid-European session and remained confined in a narrow trading band, around the $1,745 region.
A generally positive tone around the equity markets failed to assist the safe-haven XAU/USD to capitalize on the previous day's goodish bounce from the $1,724 area, or over one-week lows. Apart from this, a modest uptick in the US Treasury bond yields further collaborated towards capping gains for the non-yielding yellow metal.
Meanwhile, the US dollar languished near three-week lows, which, in turn, extended some support to the dollar-denominated commodity and helped limit any meaningful slide. Investors also seemed reluctant to place aggressive bets, rather preferred to wait for fresh clues from the Fed Chair Jerome Powell's scheduled speech later this Wednesday.
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