Gold Price Analysis: XAU/USD to stabilise between the $1653-$1707 zone – Commerzbank

FXStreet Team FXStreet

Gold (XAU/USD) has sold off to the 55-month moving average at $1707, between here and the $1653 uptrend, the yellow metal should stabilise, in the view of Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.

See – Gold Price Analysis: Rising real yields raise the prospect of a serious XAU/USD fall – Credit Suisse

Key quotes

“Gold has sold off to the 55-month ma at $1707 and currently we cannot rule out further slippage towards the $1653 2019-2021 uptrend. If seen, we would expect this to hold the downside.”

“Rallies will need to regain not only $1760/$1765.61, which is the May high and previous 50% retracement, but also the short-term downtrend at $1794 in order to alleviate downside pressure and signal recovery to the 200-day ma at $1861.”

“Above the 200-day ma at $1861 lies $1906, the 21st December high, and the top of the channel at $1918. This guards the November and September highs at $1965.84/$1973.8 and the 78.6% retracement at 2006.”

Author

FXStreet Team

FXStreet

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.