Gold (XAU/USD) pulled back nearly $20 from seven-week highs of $1790 on Monday, finishing the day slightly in the red. In Tuesday’s trading so far, gold is consolidating losses before the bears can resume the correction declines. In the view of FXStreet’s Dhwani Mehta, XAU/USD eyes $1760-55 amid higher yields and bearish technicals.
See – Gold Price Analysis: US Treasury yields and USD to ease later in the year, allowing for XAU/USD gains – HSBC
Gold’s downside appears more compelling in the near term
“Higher US yields will likely remain a weight on the yieldless gold amid global optimism, as the economic calendar remains scarce on both sides of the Atlantic.”
“Fresh updates on the covid vaccines and US fiscal stimulus will be closely followed for fresh impetus on gold prices.”
“Strong support at $1761 will get tested if the downside pressure accelerates. That level is the confluence of the horizontal trendline support and ascending 100-HMA. The next relevant cap is seen at the 200-HMA at $1752.”
“A sustained break above the $1775 resistance is needed to revive last week’s bullish momentum. The previous week high at $1784 could be on the buyers’ radars, above which the seven-week tops at $1790 will be retested.”