Gold (XAU/USD) hit fresh three-month highs at $1798 on Monday, kicking off the week on a solid footing. In Tuesday’s trading so far, gold has eased off the multi-month highs, consolidating the recent upsurge heading into a fresh batch of US economic data. In the view of FXStreet’s Dhwani Mehta, XAU/USD looks north amid a potential bull flag and lower yields.
All eyes on the US economic data for fresh cues on the dollar and gold
“The US ISM-NY Business Conditions Index, Factory Orders and Trade data will offer fresh hints on the economy, which will have a strong bearing on gold prices. In the meantime, Fed Chair Powell’s comments and US dollar bounce keep the metal on the defensive, although weaker yields will likely remain supportive of the recent uptrend.”
“Gold has carved out a classic bull flag on the hourly chart after Monday’s rally that followed a brief consolidation in Tuesday’s Asian trading.”
“The Relative Strength Index (RSI) has turned south but remains well above the midline, keeping the upbeat momentum intact.”
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