Gold failed to stage a convincing rebound last week. The yellow has been edging higher on expectations of both monetary and fiscal stimulus, recovering from the lows, but further XAU/USD decline toward $1,800 remains on the cards, FXStreet’s Eren Sengezer briefs.
“On Wednesday, the Eurostat will release the Consumer Price Index (CPI) data for the eurozone. If CPI figures trigger a selloff in the EUR/USD pair, strong demand for the buck could also weigh on XAU/USD.”
“The initial support aligns at $1,817 (January 11 low) ahead of $1,800 (psychological level). With a daily close below $1,800, the selloff could continue toward $1,775, the starting point of December uptrend.”
“The 200-day SMA seems to have turned into the first significant hurdle at $1,845. If gold manages to clear that level, the next resistance aligns at $1,860 (50-day SMA) before $1,900 (psychological level).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.