Gold edged higher on Friday and posted a third straight week of gains amid weaker USD. This week, XAU/USD eyes US CPI/Powell’s testimony for a fresh directional impetus, FXStreet’s Haresh Menghani notes.
Focus now shifts to the US CPI and Fed Chair Powell’s congressional testimony
“The market focus will remain on the latest US consumer inflation figures due on Tuesday. This, along with the Fed Chair Jerome Powell's semi-annual congressional testimony on Wednesday and Thursday, will play a key role in determining the next leg of a directional move for the XAU/USD.”
“Dips below the $1,800 mark might continue to find some support near the $1,795-93 horizontal support, which should act as a key pivotal point for intraday traders. A convincing break below might prompt some technical selling and accelerate the slide further towards the $1,780-78 support zone. Some follow-through selling below the $1,775 level will negate any near-term positive bias and turn the commodity vulnerable. The next relevant support is pegged near the $1,762-60 region, below which the XAU/USD could slide back to retest June monthly swing lows, around the $1,750 area.”
“The $1,815-18 region now seems to have emerged as immediate resistance. This is followed by the very important 200-day SMA, around the $1,828-29 zone. A sustained strength beyond will be seen as a fresh trigger for bullish traders and set the stage for an extension of the recent positive momentum witnessed over the past three weeks or so. The commodity might then aim to surpass an intermediate barrier around the $1,852-55 region and test the next major hurdle near the $1,870 level.”
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