XAU/USD outlook: Gold remains well supported by overheated geopoliticals

Slobodan Drvenica Windsor Brokers

Gold

Spot gold price eases from new three month high ($1865) posted last Friday when the metal price rose 1.75% (the biggest one-day advance since 13 Oct 2021).

Overall structure remains firmly bullish as rising tensions over Ukraine continue to boost demand for safe-haven gold.

Bulls are likely to consolidate before resuming higher for attack at $1875/77 targets (50% retracement of $2074/$1676 pullback), violation of which would spark acceleration through $1900 barrier and unmask next Fibo level at $1922 (61.8%).

Probe through the bear-trendline off $2074 record high (at $1846) adds to bullish signals.

Shallow dips should ideally find ground at $1840 zone (rising 5DMA / near Fibo 23.6% of $1780/$1865 upleg) and offer better opportunities to re-enter bullish market and keep intact lower pivots at $1832 (Fibo 38.2% of 1780/$1865) and $1823 (converged 10/20DMA’s).

Res: 1865; 1877; 1881; 1900.
Sup: 1850; 1840; 1832; 1823.

Interested in XAU/USD technicals? Check out the key levels

1. R3 1922.03
2. R2 1893.77
3. R1 1877.5
PP 1849.24
1. S1 1832.97
2. S2 1804.71
3. S3 1788.44

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.