Gold price appears to lack a clear directional bias, ranging in Thursday’s trading band near $1800. Thursday’s Doji keeps sellers hopeful amid dollar’s rebound, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Forecast: Risk-reward favourable for XAU/USD leading up to August – DBS Bank
Daily technical setup still favors the bears as 200-DMA appears elusive
“Gold traders remain hopeful that recovery headwinds would compel central banks to maintain a prolonged accommodative monetary policy stance. However, gold’s further upside appears at risk, as the risk-off market profile could likely keep the haven-demand for the US dollar alive, weighing negatively on the USD-denominated bullion.”
“Markets will continue to take cues from the dynamics in the yields and the greenback amid a light US docket. Fresh covid updates and Fed Monetary Policy Report could offer some near-term trading opportunities, as an eventful week draws to an end.”
“Gold spotted a Doji candlestick a day before, which suggests buyer exhaustion after the recent recovery rally. A Doji candlestick yet again in Friday’s trading so far also backs the view that the bullish momentum appears to be weakening, as bears fight for control. Further, the 14-Relative Strength Index (RSI) trades flatlined but still below the midline, adding credence to a potential downside.”
“To the upside, three-week highs of $1818 will offer strong resistance, above which the slightly softer 200-DMA at $1827 could be challenged.”
“The 21-DMA at $1796 will offer immediate support should the downside pressure gain momentum. The next relevant support is seen at the horizontal 100-DMA at $1790. A daily closing below the latter could open floors towards a retest of the two-month lows at $1751.”
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