Gold Price News and Forecast: XAU/USD’s recovery appears limited ahead of Powell [Video]
|Trading gold to the downside, stochastics on XAU/USD overbought [Video]
Yesterday we looked at gold from the fundamental standpoint and the market still sees downward pressure even though price has risen above $1800. From the technical view, we see price at the upper trend line in this bearish run so we will wait for confirmation before going short. Read more...
Gold Price Forecast: XAU/USD’s recovery appears limited ahead of Powell
The retreat in the US Treasury yields from yearly tops and rising inflation expectations worldwide render supportive for the inflation-hedge gold (XAU/USD). Although markets weigh in the prospects of passage of US President Joe Biden’s $1.9 trillion, which could limit the advance in the metal. Also, the XAU bulls could turn cautious ahead of the Fed Chair Jerome Powell’s testimony on the Semi-annual Monetary Policy Report before the Senate Banking Committee due later this Tuesday.
Powell is likely to reiterate his dovish stance, exerting additional downside pressure on the US dollar. Meanwhile, the market optimism-driven by encouraging vaccine developments could likely bode ill for the safe-haven gold. Read more...
XAU/USD analysis: Trades above 1,800.00
The XAU/USD exchange rate has raised to the 1,815.00 level. It is likely that yellow metal could gain support from the 200-hour moving average near 1,805.00. Thus, the rate could re-test the upper line of the falling wedge pattern circa 1,8250.00 in the short run.
If the predetermined pattern holds, the exchange rate could reverse south and target the support provided by the 55–" and 100-hour moving averages in the 1,790.00 area. Read more...
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