Gold Price Analysis: XAU/USD looks to retest $1,750 as risk dwindles


  • Gold seesaws in a choppy range around $1,770 after stepping back from two-month top.
  • Wall Street closed with losses, US 10-year Treasury yields recovered.
  • Covid fears, uncertainty over US infrastructure spending weigh on risks amid a light calendar.
  • Risk catalysts remain as the key before economic calendar gets heavy.

Following its pullback from late February tops, gold holds lower ground near $1,770, choppy between $1,770 and $1,772 amid the initial Asian session on Tuesday. The yellow metal failed to cheer the US dollar’s weakness the previous day as market sentiment worsened during the late North American session.

Bulls need more ammunition…

Although US President Joe Biden showed readiness to compromise on his $2.25 trillion infrastructure bill, Republicans seem less entertained and so were the markets. On the contrary, a bill to tame the big tech companies weighed on the Wall Street benchmarks and US dollar at the week’s start.

Also on the risk-negative side could be the coronavirus (COVID-19) fears emanating from Europe and Asia. Furthermore, the Russian build-up of military near the Ukrainian border also challenged the market sentiment.

Alternatively, a light calendar, faster vaccinations in the US, Israel and the UK joined a light calendar to propel the US Treasury yields the most in over a week.

Against, the US dollar index (DXY) registered the biggest intraday losses of 2021 the previous day while S&P 500 Futures print mild gains, despite Wall Street losses, by the press time.

Moving on, a lack of major data/events in Asia, except for the rate decision of the People’s Bank of China and the RBA’s minutes, will keep gold traders directed towards risk news for fresh impulse. Although the latest escalation in the jabbing joins the economic optimism in the West, the virus strains and geopolitical fears challenge gold buyers amid thin macros.

Technical analysis

Pullback moves from 100-day EMA, around $1,789, direct gold sellers towards 50-day EMA retest, near $1,759 by the press time.

Additional important levels

Overview
Today last price 1771.15
Today Daily Change -3.60
Today Daily Change % -0.20%
Today daily open 1774.75
 
Trends
Daily SMA20 1735.09
Daily SMA50 1752.17
Daily SMA100 1804.89
Daily SMA200 1857.65
 
Levels
Previous Daily High 1783.85
Previous Daily Low 1759.82
Previous Weekly High 1783.85
Previous Weekly Low 1723.8
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1774.67
Daily Fibonacci 61.8% 1769
Daily Pivot Point S1 1761.76
Daily Pivot Point S2 1748.78
Daily Pivot Point S3 1737.73
Daily Pivot Point R1 1785.79
Daily Pivot Point R2 1796.84
Daily Pivot Point R3 1809.82

 

 

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