Gold is below the peak, changing hands under $1,740. According to FXStreet’s Haresh Menghani, the $1,730 level holds the key for XAU/USD bulls amid a modest USD strength.
The risk-off mood, softer US bond yields extended some support and might help limit losses
“There isn’t any major market-moving economic data due for release from the US on Monday, leaving the XAU/USD at the mercy of the USD price dynamics. Apart from this, the US bond yields might also influence the commodity. Traders might further take cues from the broader market risk sentiment for some meaningful opportunities around gold.”
“Failure near a previous strong support breakpoint near the $1,760-65 region might have shifted the bias in favour of bearish traders. That said, it will still be prudent to wait for some follow-through selling below the $1,730 level before positioning for any further depreciating move. The next relevant support is pegged near the $1,720 area, below which bears might aim to challenge the $1,700 mark.”
“XAU/USD could eventually drop to retest multi-month lows support near the $1,677-76 region, which constitutes the formation of a bullish double-bottom.”
“A sustained strength beyond the $1,760-65 region will be seen as a fresh trigger for bullish traders and set the stage for additional gains. The yellow metal might then accelerate the momentum towards an intermediate resistance near the $,1,782-84 area before eventually aiming to reclaim the $1,800 round-figure mark.”
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