Gold remains one of the most sensitive assets to changes in risk mood. Apart from the encouraging fundamentals favoring XAU/USD, the metal’s technical setup also points to more upside, FXStreet’s Dhwani Mehta reports.
See – Gold Price Forecast: XAU/USD to surge towards the $2,075 record high on a weekly close above $1,917/23 – Credit Suisse
Symmetrical triangle breakout points to more gains
“The Ukraine-Russia war re-escalation will likely keep investors away from higher-yielding assets, boding well for the traditional safe-haven gold. The yellow metal could attract further bids on its appeal as an inflation hedge as well.”
“The Nonfarm Payrolls report from the US, with only 400K jobs likely to have added in America last month, remains of relevance. If the US NFP figures disappoint markets, then it will weigh on the Fed’s aggressive tightening expectations, offering additional impetus to gold buyers.”
“XAU/USD has confirmed an upside breakout from a symmetrical triangle formation. With the bullish breakout, gold is positioned to retest the 13-month highs of $1,975 if it finds acceptance above the $1,950 psychological barrier.”
“On the downside, the immediate cushion is seen at the triangle resistance turned support at $1,935, below which a sharp sell-off could be triggered towards the powerful cap of $1,928. A firm break below the latter could lead to the pattern failure, fuelling a fresh downswing towards the ascending 50-SMA at $1,916.”
See – NFP Preview: Forecasts from 10 major banks, potential for upside surprise
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.
Follow us on Telegram
Stay updated of all the news
EUR/USD remains on the back foot below 1.0800
EUR/USD remains on the defensive below 1.0800, as it consolidates weekly gains heading into Friday’s European session. The pair takes cues from the market’s sluggish momentum amid a light calendar and repositioning ahead of next week’s top-tier EU/ US events.
GBP/USD keeps range around 1.2550 amid quiet markets
GBP/USD is keeping its range play intact at around 1.2550 in the European morning this Friday. The US Dollar is licking its wounds following the US jobs data-led steep sell-off. Markets stay cautious, anticipating the end-of-the-week flows and position adjustments.
Gold could recapture 21 DMA resistance if RSI turns bullish
Gold price is consolidating Thursday’s impressive rebound from near $1,940, having yo-yoed within a $30 weekly range. Gold price could see a range breakout on Friday should the end-of-the-week flows trigger intense volatility.
Binance.US to suspend USD deposits, citing aggressive and intimidating tactics by the SEC
BinanceUS, the American arm of Binance.com, has indicated plans to suspend USD deposits, noting that its banking partners would do the same for withdrawal beginning June 13.
Eurozone in recession, but why?
It appears that a technical recession has indeed materialized, although the statistical offices took some time to officially declare it. The slight decline of 0.1% in both the fourth and first quarters is rather minimal.