Gold regained positive traction on Monday and inched back closer to multi-week tops. As FXStreet’s Haresh Menghani notes, acceptance above 100/200-day SMAs favours XAU/USD bulls.
Pullback towards the $1,795-90 region seen as a buying opportunity
“Traders will take cues from Tuesday's US economic docket, featuring the releases of the Conference Board's Consumer Confidence Index, Richmond Manufacturing Index and New Home Sales. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to gold.”
“Repeated failures near the $1,812-14 intermediate hurdle warrant some caution before positioning for any further gains. Nevertheless, the bias remains tilted in favour of bullish traders and supports prospects for a move towards challenging the $1,832-34 heavy supply zone.”
“Any meaningful pullback towards the technically significant moving averages confluence resistance breakpoint, around the $1,795-90 region, should be seen as a buying opportunity. This, in turn, should help limit the downside near the $1,782-81 horizontal support. Some follow-through selling will negate the positive outlook and drag gold prices back towards the $1,760 support zone.”
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