Gold Price Analysis: XAU/USD yearns for acceptance above $1735 ahead of US data

Gold treads water as a rise in Treasury yields cap the upside attempts.
US dollar regains poise, tracking yields higher amid cautious mood.
XAU bulls need to find a strong foothold above $1735, US data in focus.

Dhwani Mehta FXStreet

Gold (XAU/USD) trades on the defensive ahead of the European open, wavering back and forth in a $7 range around $1735.

The upside attempts in the yieldless gold appear limited by the renewed buying interest seen around the US Treasury yields, which propels the dollar back towards the four-month highs across its main competitors.

After a brief corrective stint, the US rates have resumed their uptrend, thanks to the expectations of the Biden administration’s infrastructure spending plans. Meanwhile, encouraging comments from US Treasury Secretary Janet Yellen on the bond market also helped revive the bullish bias in the returns on the market.

The strength in the greenback could be also attributed to the rising haven demand, as surging covid cases in Europe prompt investors to seek shelter in the buck. Looking ahead, gold could continue its range play, awaiting fresh directional break from the key US economic data, including the US GDP revision, Core PCE Price Index and the weekly Jobless Claims. Markets will also pay attention to a slew of Fedspeak for fresh hints on the inflation and policy outlook.

Gold Price Chart: Four-hour

From a near-term technical perspective, gold needs acceptance above the $1735 level, which is the confluence of the 21 and 50-simple moving averages (SMA) on the four-hour chart.

The next barrier for the XAU bulls would be the daily high at $1739, beyond which the weekly top of $1747 could be in sight.

The Relative Strength Index (RSI) trades flat just above the midline, keeping the buyers hopeful.

If gold traders fail to find a sustained footing above the $1735 level, sellers could return, targeting the 100-SMA support at $1723. The next downside cushion for the XAU bulls is seen at $1717, the previous week low.

Gold: Additional levels

XAU/USD

Overview
Today last price	1733.81
Today Daily Change	-1.15
Today Daily Change %	-0.07
Today daily open	1734.96

Trends
Daily SMA20	1726.26
Daily SMA50	1787.01
Daily SMA100	1826.41
Daily SMA200	1860.65

Levels
Previous Daily High	1738.48
Previous Daily Low	1723.86
Previous Weekly High	1755.59
Previous Weekly Low	1719.3
Previous Monthly High	1871.9
Previous Monthly Low	1717.24
Daily Fibonacci 38.2%	1732.9
Daily Fibonacci 61.8%	1729.44
Daily Pivot Point S1	1726.39
Daily Pivot Point S2	1717.81
Daily Pivot Point S3	1711.77
Daily Pivot Point R1	1741.01
Daily Pivot Point R2	1747.05
Daily Pivot Point R3	1755.63

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold climbs 2% as US Treasury buyback plan pressures long-term yields

Gold (XAU/USD) enters Wednesday’s American trading hours with decent intraday gains, as a softer US Dollar (USD) and a sharp pullback in long-term US Treasury yields help the metal recover all the previous day’s losses.

Crypto Today: Bitcoin, Ethereum, XRP defend key support as ETF inflows return

Bitcoin’s upside remains capped on Wednesday while the downside appears strongly supported above $64,000. The Crypto King’s early week rebound lost momentum near $65,000 as investors assessed the impact of geopolitical tensions in the Middle East.

WTI Oil climbs as US-Iran standoff keeps Middle East supply risks elevated

West Texas Intermediate (WTI) Oil holds firm on Wednesday, hovering near its highest level in more than three weeks as traders balance Middle East supply risks against rising US crude inventories. At the time of writing, the US benchmark trades around $85.20 per barrel, up nearly 1% on the day.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.