Heading into Tuesday, gold has snapped the four-day losing streak, posting small gains to trade once again above $1850. XAU/USD looks north but upside seems limited amid rising Treasury yields, FXStreet’s Dhwani Mehta reports.
“A pause in the US dollar rally combined with US stimulus expectations bodes well for the XAU bulls. Dismal market mood, amid mounting covid fears and fresh China-Hong Kong tussle, also favors the upside in the safe-haven gold. In absence of relevant economic news, the broader market sentiment and Treasury yields price action could influence the flows in yieldless gold.”
“The bulls are probing the bearish 50-hourly moving average (HMA) at $1858. The next relevant upside barrier awaits at $1890, the downward-sloping 100-HMA.”
“If the bulls face rejection at 50-HMA, a pullback towards the pattern resistance now support around $1852 cannot be ruled out. Further south, the horizontal 21-HMA at $1847 could offer some support, below which the pattern support at $1842 would come into play. Meanwhile, Monday’s low of $1817 will be the level to beat for the bears.”
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