Gold remains under pressure but holds above $1,700 so far. The precious metal is suffering from rising US yields. XAU/USD’s fate hinges on Treasury yields and Powell’s speech, FXStreet’ Dhwani Mehta reports.
“In the day ahead, if the risk-off mood intensifies, it could bolster the haven-demand for the US dollar and limit the corrective pullback in gold. Also, traders are likely to remain cautious and would refrain from placing any directional bets on gold ahead of the Fed Chair Jerome Powell’s appearance scheduled today at 17:05 GMT.”
“Gold is trading in an extremely narrow range within a falling wedge formation, with a powerful resistance aligned at $1724.However, the bearish 21-simple moving average (SMA) at $1729 could challenge the bullish commitments.”
“The next significant upside barrier awaits at the $1750 psychological level, above which the downward-sloping 50-SMA at $1764 could be probed.”
“The Relative Strength Index (RSI) edges lower towards the oversold territory, suggesting that the sellers could likely retain control in the near-term. Therefore, a break below the $1700 level cannot be ruled, below which the critical $1692 support could be put to test.”
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