Gold is extending the rebound while battling $1800. Room to rise towards $1825? XAU/USD awaits key event risks, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Forecast: XAU/USD to face stubborn resistance at the $1800/34 zone – Credit Suisse
Gold’s 4H chart shows a falling wedge breakout
“Investors will look forward to any hints on the taper timing from Powell, although the Delta covid variant concerns have recently watered down the hawkish bets.”
“Gold traders will await the US PCE inflation data ahead of Powell’s address. But Powell’s take on the monetary policy will set the tone for the market in the coming days, heavily impacting the USD valuations and gold price.”
“Gold price has confirmed a falling wedge breakout after closing above the falling trendline resistance at $1795 on a four-hour candlestick basis. The upside breakout has re-opened doors towards $1825, which is the pattern target. However, the weekly highs at $1810 could challenge the bullish attempts on a sustained move above $1800.”
“21-Simple Moving Average (SMA) at $1796 is likely to offer an immediate cushion to the bulls. The confluence of the 200-SMA and wedge resistance-turned-support at $1794 will be the next relevant target for gold sellers. Further south, the 50-SMA at $1791 will be back in play, with a follow-through downside bias likely to fuel a fresh sell-off towards the 100-SMA around $1777.”
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.
Recommended content
Editors’ Picks
EUR/USD retreats to 1.0750, looks to post small weekly gains
EUR/USD lost its traction and declined to the 1.0750 area in the American session on Friday. In the absence of high-tier data releases, week-end flows seem to be impacting the pair's action heading into the weekend.
GBP/USD holds above 1.2550 ahead of the weekend
GBP/USD keeps its footing on Friday and trades modestly higher on the day above 1.2550 following Thursday's rally. Ahead of next week's all-important US inflation data and Fed policy announcements, modest US Dollar weakness allows the pair to stay in positive territory.
Gold struggles to find direction, holds steady near $1,960
Gold price struggles to make a decisive move in either direction on Friday in the absence of high-impact data releases. The benchmark 10-year US Treasury bond yield stays relatively calm above 3.7% following Thursday's slide, limiting XAU/USD's action.
Weekly Roundup: Binance US halts fiat services, Coinbase does business as usual, XRP hits key milestone
The US financial regulator, the Securities and Exchange Commission’s (SEC) clampdown on exchange negatively influenced the crypto market and assets throughout the week. The lawsuits against Binance and Coinbase resulted in several challenges for the platforms’ users.
The Week Ahead - FOMC, ECB and Bank of Japan, US CPI, China retail sales and Tesco results
A busy week is ahead, including meetings from the Federal Reserve, the European Central Bank, and the Bank of Japan. Data to be released includes US CPI and China retail sales. Tesco will also release results.