- XAU/USD’s recovery stalls, faces rejection at 21-SMA on the 4H chart.
- RSI has turned south, pointing to more downside in the near-term.
- The US Treasury yields resume their rally, driving US dollar higher.
The resumption in the Treasury yields rally comes on the heels of a stronger US NFP report and Senate’s passage of the $1.9 trillion stimulus bill, which boosted the reflation theme.
Amid a data-light US docket, gold traders will continue to take cue from the bond markets and action in the yields for fresh trading impetus.
From a technical perspective, sellers seemed to have returned following a rejection near the downward-sloping 21-simple moving average (SMA), now at $1709.
Gold Price Chart: Four-hour
The XAU bears look to test the falling trendline support at $1679, as the Relative Strength Index (RSI) has also turned south, suggesting more room to the downside.
Ahead of that level, the nine-month lows of $1687 could be tested.
Alternatively, a sustained move above the 21-SMA hurdle could trigger a run towards the bearish 50-SMA at $1736.
Note that the price wavers within a falling wedge formation, with acceptance above the latter could validate the pattern. The near-term bearish bias could negate thereafter.
At the press time, gold trades modestly flat at $1698.80, near-daily lows.
Gold Additional levels
|Today last price||1698.82|
|Today Daily Change||1.65|
|Today Daily Change %||0.10|
|Today daily open||1698.2|
|Previous Daily High||1707.76|
|Previous Daily Low||1687.37|
|Previous Weekly High||1759.98|
|Previous Weekly Low||1687.37|
|Previous Monthly High||1871.9|
|Previous Monthly Low||1717.24|
|Daily Fibonacci 38.2%||1699.97|
|Daily Fibonacci 61.8%||1695.16|
|Daily Pivot Point S1||1687.79|
|Daily Pivot Point S2||1677.39|
|Daily Pivot Point S3||1667.4|
|Daily Pivot Point R1||1708.18|
|Daily Pivot Point R2||1718.17|
|Daily Pivot Point R3||1728.57|
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