Gold Price Analysis: XAU/USD recovers further from multi-week lows, climbs to $1845 region


  • Gold gained positive traction for the second consecutive session on Tuesday.
  • A modest USD pullback was seen as a key factor that benefitted the metal.
  • The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold edged higher during the early European session and climbed to two-day tops, around the $1845 region in the last hour.

The precious metal gained positive traction for the second consecutive session on Tuesday and built on the overnight goodish rebound from the vicinity of the $1800 mark, or seven-week lows. The uptick was exclusively sponsored by a modest US dollar pullback from nearly one-month tops, which tends to benefit the dollar-denominated commodity.

That said, the prevalent upbeat market mood held bullish traders from placing any aggressive bets and might keep a lid on any strong rally for the safe-haven XAU/USD. The global risk sentiment remained well supported by the optimism over the rollout of COVID-19 vaccines and hopes for more aggressive fiscal spending under Joe Biden's presidency.

Meanwhile, expectations for a larger government borrowing triggered a fresh leg up in the US Treasury bond yields. This might turn out to be another factor that could cap the upside for the non-yielding yellow metal. Investors might also prefer to wait on the sidelines ahead of the President-elect Joe Biden's inaugural ceremony on Wednesday.

This makes it prudent to wait for some strong follow-through buying before positioning for any further appreciating move. In the absence of any major market-moving economic releases, traders will look forward to US Treasury Secretary nominee Janet Yellen’s confirmation hearing for some impetus. This, along with the broader market risk sentiment, might further contribute to produce some short-term trading opportunities around the XAU/USD.

Technical levels to watch

XAU/USD

Overview
Today last price 1844.25
Today Daily Change 7.12
Today Daily Change % 0.39
Today daily open 1837.13
 
Trends
Daily SMA20 1878.57
Daily SMA50 1860.66
Daily SMA100 1886.17
Daily SMA200 1844.76
 
Levels
Previous Daily High 1840.86
Previous Daily Low 1802.8
Previous Weekly High 1863.83
Previous Weekly Low 1816.96
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1826.32
Daily Fibonacci 61.8% 1817.34
Daily Pivot Point S1 1813
Daily Pivot Point S2 1788.87
Daily Pivot Point S3 1774.94
Daily Pivot Point R1 1851.06
Daily Pivot Point R2 1864.99
Daily Pivot Point R3 1889.12

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD falls toward 1.19 after robust US Nonfarm Payrolls data

EUR/USD is trading above 1.19 after dipping below that number in response to the US Nonfarm Payrolls, which showed an increase of 379K jobs in February. Higher yields in response to Powell are keeping the dollar bid.

EUR/USD News

GBP/USD recovers after post-NFP dip below 1.38

GBP/USD is trading above 1.38 bus till down the day. The US gained 379.000 jobs, roughly double than expected and supporting the dollar. The Senate's stimulus debate is eyed.

GBP/USD News

XAU/USD battles 1700 level

Gold is staging a rebound toward $1,700 amid proift-taking ahead of the weekend but remains on track to close the third straight week in the negative territory.

Gold News

Ethereum price primed for a swift recovery as the network prepares for a major update in July

Ethereum price aims for a significant recovery towards $2,000. A major upgrade scheduled for July intends to fix the problem with gas fees on Ethereum. ETH miners are not happy with the decision.

Read more

US Dollar Index pushes higher to 92.20 on stellar Payrolls

The march north in the greenback remains unabated and trade in fresh 2021 highs beyond the 92.00 hurdle when tracked by the US Dollar Index (DXY).

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures