Gold has been hit hard by the upswing in returns on Treasuries, a side-effect of the dollar storm. The yellow metal tumbled below $1,870. From a technical perspective, XAU/USD, for now, seems to have found some support near an ascending trend-line extending from YTD lows, as FXStreet’s Haresh Menghani notes.
XAU/USD bears turn cautious near ascending trend-line, NFP awaited
“Investors now turned cautious and preferred to move on the sidelines as the focus remains on the closely-watched US monthly jobs report – popularly known as NFP. This will be one of the most important pieces of economic data that would set the tone for the upcoming FOMC meeting later this month and provide a fresh directional impetus to the metal.”
“Ascending trend-line extending from YTD lows around $1,855 should now act as a key pivotal point for short-term traders and help determine the near-term trajectory. The trend-line is followed by the very important 200-day SMA near the $1,842 area. Sustained weakness below will be seen as a fresh trigger for bearish traders and accelerate the slide further towards the $1,816-15 intermediate support en-route the $1,800 round-figure mark.”
“Immediate resistance is now pegged near the $1,880-82 region ahead of the $1,895-$1,900 zone. Any subsequent move up might continue to confront some supply near the $1,915-16 area, which if cleared would set the stage for additional gains. The precious metal might then aim to surpass an intermediate resistance near the $1,925 level and accelerate the momentum further towards the $1,950 level.”
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