Gold witnessed some good two-way price moves on Thursday and finally settled in the red, marking the third day of a negative close in the previous four. As FXStreet’s Haresh Menghani notes, XAU/USD bears await a short-term trading range breakdown.
See – Gold Price Analysis: XAU/USD rallies seen as corrective while below $1765 – Commerzbank
Key quotes
“Traders now look forward to the US economic docket, featuring the release of Personal Income/Spending figures, Core PCE Price Index and Michigan Consumer Sentiment index. This, along with the broader market risk sentiment and the US bond yields, could provide some impetus on the last day of the week.”
“Sustained weakness below the $1720 area 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 precious metal might then surpass an intermediate barrier near the $1773-75 region and aim to reclaim the $1800 mark.”
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