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Gold (XAU/USD) hit the highest levels in two weeks near the $1990 mark, as the bulls remain unstoppable, courtesy of the relentless declines in the US dollar across its main competitors. On Tuesday, eyes are on US ISM Manufacturing PMI and Employment sub-index, FXStreet’s Dhwani Mehta reports.

Key quotes

“The yieldless gold continues to benefit from expectations of a low-interest-rate environment for a prolonged period in the aftermath of the Fed Chair Powell’s speech. The bullish tone in gold is also backed by the weak performance in the Asian equities following a softer close on Wall Street overnight. The continued rise in the coronavirus cases globally overwhelm the markets. Looking ahead, only a better-than-expected US ISM Manufacturing PMI and Employment sub-index could come to the rescue of the dollar bulls.”

“Gold now looks to test the pattern target at $1994 en route the critical hurdle at $2000.”

“The hourly Relative Strength Index (RSI) has reversed from the overbought territory, still remains bullish near the 68 area.”

“The support at $1972 will act as the immediate support, below which the $1970 level could be challenged. That level is the confluence of the 21-HMA and the pattern support. Should the selling pressure accelerate the upward-sloping 50-HMA at $1964 could come into play.”

 

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