- A combination of factors assisted gold to gain some traction on Wednesday.
- The uptick lacked follow-through and remained capped near 200-hour SMA.
- The set- favours bearish traders and supports prospects for further weakness.
Gold struggled to capitalize on the Asian session bounce from weekly lows and was last seen trading with only modest gains, around the $1730 region.
The prevalent risk-off mood extended some support to the safe-haven XAU/USD. This, along with some follow-through slide in the US Treasury bond yields, further benefitted the non-yielding yellow metal. However, the underlying bullish sentiment around the US dollar capped any meaningful upside for the dollar-denominated commodity.
From a technical perspective, the intraday uptick faltered near the $1735 confluence breakpoint and supports prospects for the resumption of the prior downward trajectory. The mentioned region comprised of 200-hour SMA and short-term ascending trend-line extending from the $1677-76 region, or multi-month lows touched on March 8.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and are yet to recover from the negative territory on hourly charts. This further adds credence to the near-term bearish outlook. Hence, a subsequent fall below the $1700 mark, towards retesting multi-month lows, looks a distinct possibility.
Some follow-through selling will be seen as a fresh trigger for bearish traders and set the stage for a slide towards the $1630-25 intermediate support. The XAU/USD could eventually drop to test sub-$16000 levels in the near-term.
On the flip side, the trend-line support breakpoint, now coinciding with the $1740-42 supply zone, should act as immediate resistance. A sustained move beyond might trigger a short-covering move and push the XAU/USD beyond the $1750 level. That said, the positive move might still be seen as a selling opportunity and remain capped near the $1765-60 area.
XAU/USD 1-hourly chart
Technical levels to watch
|Today last price||1729.77|
|Today Daily Change||2.82|
|Today Daily Change %||0.16|
|Today daily open||1726.95|
|Previous Daily High||1742.58|
|Previous Daily Low||1724.76|
|Previous Weekly High||1755.59|
|Previous Weekly Low||1719.3|
|Previous Monthly High||1871.9|
|Previous Monthly Low||1717.24|
|Daily Fibonacci 38.2%||1731.57|
|Daily Fibonacci 61.8%||1735.77|
|Daily Pivot Point S1||1720.28|
|Daily Pivot Point S2||1713.61|
|Daily Pivot Point S3||1702.46|
|Daily Pivot Point R1||1738.1|
|Daily Pivot Point R2||1749.25|
|Daily Pivot Point R3||1755.92|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
AUD/USD bears in the market, chipping away into key support
AUD/USD bulls look to the 38.2% Fibonacci of the prior bearish leg and then 0.6725 which guards a continuation higher. Bears are in the market and eye a move deeper into support.
EUR/USD bears flirt with golden Fibonacci ratio, focus on 1.0765-60
EUR/USD seesaws around 1.0830-20 as the key Fibonacci retracement level probes bears during early Friday, following the Euro pair’s U-turn from a seven-week high the previous day. The Euro marked the first daily loss in six on Thursday as it failed to cross the two-month-old horizontal resistance area surrounding 1.0930-35.
Gold aims to shift business above $2,000, US Durable Goods Orders eyed
Gold price is oscillating in a narrow range of $1,990-2,000 in the early Asian session. The precious metal is struggling to shift its auction above the psychological resistance of $2,000. However, the upside looks favored as the Federal Reserve (Fed) has come closer to halting its policy-tightening cycle.
Arbitrum airdrop flops, but ARB still makes it to a commendable all-time high. Here’s what happened
The token launch for Arbitrum was quite bumpy, to say the least after users could not claim their airdrop tokens for the first one hour post-launch. The turn of events was very disappointing, given that users had been waiting for a week for the highly-advertised ARB airdrop.
Is the banking crisis over, or is the worst yet to come?
When the Fed started signalling higher for longer last summer, everybody assumed that the first thing to break would be consumption, followed by big job losses. Few anticipated that the banking sector would get caught up in the crossfire of the Federal Reserve’s battle against high inflation.