Gold is rising, with XAU/USD recapturing the $1,800 level. However, XAU/USD’s recovery appears limited ahead of Powell, according to FXStreet’s Dhwani Mehta.
“Powell is likely to reiterate his dovish stance, exerting additional downside pressure on the US dollar. Meanwhile, the market optimism-driven by encouraging vaccine developments could likely bode ill for the safe-haven gold. All in all, gold is likely to hold onto its recovery mode, awaiting fresh cues from the US CB Consumer Confidence data and Powell’s testimony.”
“The bulls could extend control towards the $1820 round number, above which the resistance at $1825 could be challenged.”
“The daily chart shows that the bearish 21-simple moving average (DMA) at $1821 could cap the recovery from seven-month tops, as the RSI turns flat below the midline.”
“Should the downside pressure regain momentum, a test of the November lows at $1765 would be back on the table. Also, the seven-month lows at $1761 could be at risk.”
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.