Gold Price Analysis: XAU/USD sees strong support around $1765 – Standard Chartered
Gold (XAU/USD) has struggled in recent days following the latest surge in US Treasury yields. Analysts at Standard Chartered see strong support for the yellow metal at $1765 followed by the $1690 mark.
See – Gold: Suggestions of tapering to put further pressure on XAU/USD – ING
Key quotes
“Bond yields are unlikely to drive further gains in gold. The Fed will likely welcome the rise in inflation expectations under its Average Inflation Targeting framework. This means a further rise in real yields could be harder to come by.”
“While USD has been resilient in recent weeks, a resolutely accommodative Fed in the face of rising growth and inflation expectations is likely to be negative for the USD over the next 6-12 months. This can be a positive driver for gold, helping it still deliver absolute gains.”
“Technicals are admittedly weak, given the formation of a ‘death cross, which increases the risk of an unwind of stale longs built up over the past year. In terms of momentum, we are in oversold territory; hence, some consolidation is likely near-term. Key supports are at $1765 and $1680-1690.”
Author
FXStreet Team
FXStreet
