Gold Price Analysis: XAU/USD eyes $1716 downside target ahead of US CPI – Confluence Detector
Gold (XAU/USD) has reversed the early bounce and resumes the two-day decline, as Treasury yields regain upside momentum amid rising inflation expectations. The renewed uptick in the yields strengthened the recovery in the US dollar, as all eyes remain on the critical US CPI release for March.
Gold’s fate will hinge on the US inflation numbers, as it will offer fresh insights on the strength of the economic recovery and the Fed’s monetary policy outlook. Read more...
Gold Price Analysis: XAU/USD regains traction, tests $1,740
The XAU/USD pair dropped to a daily low $1,723 in the early European session but made a sharp U-turn in the last hour. Boosted by a renewed selling pressure surrounding the greenback after the inflation data, gold climbed into the positive territory and was last seen gaining 0.3% on the day at $1,738.
The Relative Strength Index (RSI) indicator on the four-hour chart rose above 50 with the latest upsurge, suggesting that the bullish momentum is gathering strength. On the upside, the first hurdle is aligned at $1,740 (Fibonacci 23.6% retracement of Mar. 31 - Apr. 8 rally) ahead of $1,745 (static level). A daily close above the latter could open the door for additional gains toward $1,755, where the 50-day SMA is located. Read more...
Gold Futures: Further declines on the cards
Open interest in Gold futures markets increased by around 1.2K contracts on Monday, reversing the previous build according to preliminary readings from CME Group. Volume, instead, shrunk by around 47.1K contracts after two daily builds in a row.
Monday’s downtick in Gold prices was amidst rising open interest, allowing for the continuation of the recent weakness in the very near-term. That said, the $1,700 mark per ounce troy emerges as the next interim support. Read more...
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