XAU/USD: Bond yield presses gold price

XAU/USD, H1

Gold prices fell on Friday, partly due to an increase in bond yields. That encouraged the Dollar to appreciate, plus this could be a sell-off for traders and investors who bought in early April. As for the stock market itself, the S&P 500 and Dow Jones continued to hit new all-time highs. As the new round of stimulus continues to boost investor confidence that the US economy will be able to grow ahead of the Eurozone and other countries, there is still a risk from the Covid-19 epidemic, although infection rates continue to decline as vaccination rates accelerate.

The fall in the gold price on Friday can be explained from a technical perspective. It can be seen that in the Day time frame, the gold price could not pass the MA50 resistance at the 1,760 zone, and the low zone from the end of 2020 (30 November). A break of 1,745 was also not sustained as the price closed the week at 1,743.

For the trend of gold prices today it is clear in the H1 timeframe that the price has come down to trade in the lower zone of the channel and is currently stuck between the MA50 and MA200, with the gold price oscillating between these support and resistance areas. The continuous downturn from Friday is still not seeing a promising reversal trend in the H1 timeframe where the MACD remains in the negative area, while the RSI is at 31.84 and still heading into the oversold zone, with the first support at 1,735. Breaking below here, there is the next support at 1,722 while the main resistance for today is at the MA50 line at 1,745.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.