Gold Price Analysis: XAU/USD to confirm a bullish double-bottom near the $1,677-76 zone

FXStreet Team FXStreet

Gold survived the first test of YTD lows touched on March 8 and staged a goodish rebound on Wednesday, snapping two days of the losing streak. On Thursday, XAU/USD edges higher for the second consecutive session, as FXStreet’s Haresh Menghani notes.

See – Gold Price Analysis: XAU/USD flirts with the $1676 March low, risking a slide to $1616 – Commerzbank

XAU/USD forms a double-bottom near $1677-76 region, March lows

“Market participants now look forward to the US economic docket, highlighting the release of ISM Manufacturing PMI for some impetus. The key focus, however, will remain on Friday's release of the closely-watched US monthly jobs report – popularly known as NFP. This, along with the broader market risk sentiment, the US bond yields and the USD price dynamics will play a key role in determining the next leg of a directional move for the precious metal.”

“Gold could be in the process of forming a bullish double-bottom near the $1,677-76 region. The pattern, however, will be confirmed once the metal breakthrough a previous strong support breakpoint, now turned resistance near the $1,760-65 region. In the meantime, the $1,720 region might act as an immediate hurdle, above which a fresh bout of short-covering has the potential to lift the XAU/USD further towards the $1,742-44 supply zone.”

“Sustained weakness back below the $1,700 mark might turn the precious metal vulnerable to retest the $1677-76 strong support. Some follow-through selling will negate the bullish set-up and pave the way for an extension of the recent downward trajectory.”

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.