Gold (XAU/USD) dropped on Tuesday but held within its recent trading range between $1800-$1765, as the US Treasury yields surged and pushed the US dollar higher alongside. Better-than-expected US CB Consumer Confidence data and expectations of President Joe Biden’s fiscal stimulus fuelled a fresh rally in the returns on the US debt. Meanwhile, mixed performance on the US stocks amid pre-Fed caution and earnings reports lifted the US dollar’s safe-haven appeal, which added to gold’s decline. Read more…
Gold (XAU/USD) is extending Tuesday’s decline towards $1760 as the yellow metal is so far thwarted by the 55-day moving average at $1800.63. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects gold to retry the upside as the $1730/23 zone is held off.
“Gold’s up move has faltered at the 55-day ma at $1800.64 for now. More worrying is the fact that the Elliott wave counts have turned more negative and are implying a retracement towards the $1730/23 zone. Provided it holds there we should retry the topside once again.” Read more…
Gold dropped to one-and-half-week lows during the mid-European session, albeit recovered a bit thereafter. The commodity was last seen trading around the $1,769 region, still down over 0.60% for the day.
The previous metal added to the previous day’s modest losses and witnessed some follow-through selling for the second consecutive session on Wednesday. The downfall was sponsored by a goodish pickup in the US dollar demand, which tends to drive flows away from the dollar-denominated commodity. Read more…
