Gold Price News and Forecast: XAU/USD’s path of least resistance appears down
|Gold Price Analysis: XAU/USD eyes key $1803 support amid US dollar strength – Confluence Detector
Gold (XAU/USD) remains under pressure while below the $1850 level, with the $1800 support back in sight amid a lack of new developments on the US fiscal stimulus. Renewed US-China tensions combined with fresh coronavirus lockdowns dent risk appetite, boosting the haven demand for the US dollar across the board.
The rebound in the US Treasury yields and surge in the platinum group metals (PGM) further weigh on gold prices. How is the bright metal positioned on the charts? The Technical Confluences Indicator shows that gold could meet initial support at $1818, which is the Fibonacci 38.2% one-week. Read more...
Gold Price Forecast: XAU/USD’s path of least resistance appears down
Gold (XAU/USD) extends its downward spiral into the second straight day on Friday, although remains on track to book a weekly gain. The broad-based US dollar rebound amid a pullback in the US Treasury yields and risk-aversion continues to exert bearish pressure on gold. The market mood remains tepid after US President Joe Biden warned a group of senators that China will “eat our lunch” if America doesn’t “step up” its infrastructure spending. He warned a day after his first phone call with Chinese President Xi Jinping.
Also, negatively affecting the risk tone is the lack of fresh developments on the massive US stimulus front, which adds to the downside in the inflation-hedge gold. Markets are resorting to taking profits off the table on their US dollar short positions after the recent slide while gold’s rejection above the $1850 level also warrant caution for the bullish buyers. Read more...
Gold Futures: Extra losses likely
Open interest in gold futures markets rose for the second session in a row on Thursday, this time by just 487 contracts in light of preliminary figures from CME Group. On the other hand, volume shrunk by around 32.6K contracts, reversing the previous build.
Thursday’s moderate pullback in gold prices was on the back of rising open interest, leaving the door open to the continuation of the downtrend in the very near-term. While the drop in volume could temper the decline, another test of the $1,800 mark per ounce troy cannot be ruled out. Read more...
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