Gold Price Forecast: XAU/USD rebound loses momentum, upside limited below $1,760
XAU/USD Current price: $1,752.23
- A mixed session for US stocks and the Greenback.
- US yields are modestly higher while commodities rise.
- Technical outlook improves for gold after finding support at the $1740 zone.
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Spot gold is rising on Tuesday, recovering after Monday’s slide. XAU/USD bottomed during the Asian session at $1739.49, the lowest since Wednesday. It then started to recover amid a rally of commodities and also emerging market currencies. It peaked at $1759.05 and then lost Momentum.
A weaker Dollar and demand for commodities boosted the rebound in gold but it was not strong enough to push for a break above $1760. A rebound in US yields and another decline in equity prices in Wall Street weighed on the yellow metal.
Commodities gained Momentum on the back of expectations about expectations of an easing in China’s zero-Covid policy. On Wednesday, US economic data will be on the radar. Reports include Job openings, Q3 GDP and the Beige Book. Federal Reserve Chairman Jerome Powell will speak on the US economy and the labor market. The Non-farm payroll report is due on Friday.
XAU/USD price short-term technical outlook
The XAU/USD daily chart shows price moving sideways between the 20-day Simple Moving Average (SMA) at $1,730 and the $1,760 zone. Price continues to hold above key SMAs with a modest bullish bias. A close under $1,730 would deteriorate the technical outlook of gold bulls.
In the near term, according to the 4-hour chart, technical indicators are biased to the downside in XAU/USD. The RSI turned south and the Momentum is below 0, with the price under the 20-Simple Moving Average. All negative signs. The scenario would change completely with a firm break above $1,760 that should open the doors to more gains.
Support levels: 1,739.10 1,720.75 1,703.00
Resistance levels: 1,760.00 1,771.10 1,785.00
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
