Gold Price Analysis: XAU/USD tests $1,600 ahead of US data


  • US Dollar Index continues to erase last week's losses.
  • Major European equity indexes post modest gains on Tuesday.
  • Focus shifts to CB Consumer Confidence Index data from US.

The XAU/USD pair closed the first day of the week virtually unchanged near $1,620 and turned south on Tuesday pressured by the relatively upbeat market mood and the broad USD strength. As of writing, the pair was trading near $1,600, erasing $21.5, or 1.33%, on the day.

The sharp rebound witnessed in the Chinese PMI data for both the manufacturing and the service sectors in March revived hopes of a "V-shaped recovery" in the global economy. The improved market sentiment seems to be making it tough for gold to find demand as a safe-haven. As of writing, Germany's DAX 30 was up around 0.4% on the day while the Euro Stoxx 50 and the UK's FTSE 100 were adding 0.2% and 0.7%, respectively.

USD stays strong ahead of key data

Meanwhile, ahead of the Conference Board's Consumer Confidence Index from the US, the US Dollar Index is climbing higher toward the critical 100 handle to reflect the broad-based USD strength.

Previewing the data, "consumers, especially the vast majority who remain employed, can be expected to pull back sharply on spending in the next few weeks,"  said Joseph Trevisani, senior analyst at FXStreet. "If nothing else, their isolation will obviate a whole range of normal incidental and discretionary expenditures."

Technical levels to watch for

XAU/USD

Overview
Today last price 1598.58
Today Daily Change -23.98
Today Daily Change % -1.48
Today daily open 1622.56
 
Trends
Daily SMA20 1593.57
Daily SMA50 1589.94
Daily SMA100 1543.41
Daily SMA200 1510.31
 
Levels
Previous Daily High 1636.13
Previous Daily Low 1611.74
Previous Weekly High 1644.54
Previous Weekly Low 1482.74
Previous Monthly High 1689.4
Previous Monthly Low 1547.56
Daily Fibonacci 38.2% 1621.06
Daily Fibonacci 61.8% 1626.81
Daily Pivot Point S1 1610.82
Daily Pivot Point S2 1599.09
Daily Pivot Point S3 1586.43
Daily Pivot Point R1 1635.21
Daily Pivot Point R2 1647.87
Daily Pivot Point R3 1659.6

 

 

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