Gold Technical Analysis: Set-up points to an extension of the intraday positive move

Haresh Menghani FXStreet

• Over the past two trading session, the precious metal has been trending higher alongside an ascending trend-channel formation on the 1-hourly chart and refreshed weekly tops in the last hour.

• The prevalent strong bearish sentiment surrounding the USD was seen as one of the key factors behind the dollar-denominated commodity's positive move for the second straight session.

• However, surging US Treasury bond yields, with yields on the benchmark 10-year bond hitting fresh four-month tops, kept a lid on any runaway rally for the non-yielding yellow metal.

• Meanwhile, technical indicators on the mentioned chart have started gaining positive traction and support prospects for additional gains, albeit risk-on mood might cap intraday up-move.

Gold 1-hourly chart

Spot Rate: $1206.62
Daily Low: $1201.33
Trend: Intraday bullish

Resistance
R1: $1209.10 (trend-channel hurdle)
R2: $1212.67 (monthly high set last week)
R3: $1216.47 (R3 daily pivot-point)

Support
S1: $1201.33 (current day swing low)
S2: $1198.87 (S1 daily pivot-point)
S3: $1192.81 (weekly low set on Tuesday)

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.