Gold Price Analysis: A softer risk tone to extend some support to XAU/USD and limit losses

Gold extended its two-way price moves and remained confined in a broader trading range. As FXStreet’s Haresh Menghani notes, the bias remains tilted in favour of XAU/USD bears.

See:  Gold, silver to plummet by year-end to $1600 and $20 respectively – CE

Key quotes

“There isn’t any major market-moving economic data due for release on Monday. This might hold traders from placing aggressive bets ahead of Friday’s release of the closely watched US monthly jobs report – popularly known as NFP. In the meantime, the broader market risk sentiment, the US bond yields and the USD price dynamics will continue to play a key role in influencing the commodity.”

“A sustained breakthrough near two-week-old trading range support, around the $1720 region is needed to confirm the negative bias. This will be seen as a fresh trigger for bearish traders and turn the commodity vulnerable to accelerate the slide towards the $1700 mark. The breakdown momentum could further get extended and drag the metal back towards testing multi-month lows, around the $1677-76 region touched earlier this month.”

“The $1744-45 region might continue to act as a strong barrier and is followed by the post-FOMC highs, near the $1755 level ahead of the $1760 strong support breakpoint. The latter coincides with 200-period SMA on the 4-hourly chart, which if cleared decisively might trigger a short-covering move. The yellow metal might then surpass an intermediate barrier near the $1773-75 region and aim to reclaim the $1800 mark.”