Gold Price Analysis: XAU/USD seeks fresh clues to hold corrective pullback above $1,770


  • Gold struggles to extend recovery moves beyond $1,780.
  • Market sentiment dwindles after Yellen confused traders, mixed updates on covid, vaccines.
  • Off in China, Japan adds to the market’s indecisiveness, risk catalysts remain as the key factors to watch.

Gold lacks upside momentum while taking rounds to $1779-80 amid the initial Asian session on Wednesday. The bright metal dropped the most since March 31 the previous day, before bouncing off $1,770.90. As no major risk-positive news crossed wires of late, the corrective pullback seems to wait for a fresh push to stay on the table.

Mixed clues, cautious sentiment tease bears…

Following the escalation in the coronavirus (COVID-19) woes in Asia, the upbeat vaccine developments and hopes of easing the pandemic in some parts of India tested gold sellers. However, comments favoring the rate hike from US Treasury Secretary Yellen roiled market sentiment before the key US diplomat took a U-turn on her initial statements.

While the risk-off mood put a bid under the US dollar, Wall Street bears cheered technology shares’ heavy selling even as Dow Jones Industrial Average (DJI30) managed to bounce in the last hours.

In addition to hints concerning the monetary policy normalization and COVID-19, gold traders were also baffled by downbeat US data that backed the risk-aversion and the USD.

It should, however, be noted that ongoing holidays in Japan and China restrict the market moves ahead of the key US activity and employment numbers.

Among them, today’s US ISM Services PMI will be the first to entertain momentum traders after the ISM Manufacturing PMI disappointed markets.

Read: US ISM Services PMI April Preview: Inflation readings remain key as recovery gains strength

If the risk catalysts keep flashing mixed signals, gold may choose to remain volatile within the immediate trading range below $1,800.

Technical analysis

Despite Tuesday’s sell-off, gold prices stay above $1,766-69 support confluence comprising 50-day and 21-day EMA, as well as a three-week-old ascending trend line, which in turn keeps the buyers hopeful.

Additional important levels

Overview
Today last price 1778.84
Today Daily Change -14.10
Today Daily Change % -0.79%
Today daily open 1792.94
 
Trends
Daily SMA20 1765.58
Daily SMA50 1745.5
Daily SMA100 1799.34
Daily SMA200 1854.8
 
Levels
Previous Daily High 1798.02
Previous Daily Low 1766.17
Previous Weekly High 1790.03
Previous Weekly Low 1756.18
Previous Monthly High 1797.93
Previous Monthly Low 1705.84
Daily Fibonacci 38.2% 1785.85
Daily Fibonacci 61.8% 1778.34
Daily Pivot Point S1 1773.4
Daily Pivot Point S2 1753.86
Daily Pivot Point S3 1741.55
Daily Pivot Point R1 1805.25
Daily Pivot Point R2 1817.56
Daily Pivot Point R3 1837.1

 

 

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