Gold survived the first test of YTD lows touched on March 8 and staged a goodish rebound on Wednesday, snapping two days of the losing streak. On Thursday, XAU/USD edges higher for the second consecutive session, as FXStreet’s Haresh Menghani notes.
See – Gold Price Analysis: XAU/USD flirts with the $1676 March low, risking a slide to $1616 – Commerzbank
XAU/USD forms a double-bottom near $1677-76 region, March lows
“Market participants now look forward to the US economic docket, highlighting the release of ISM Manufacturing PMI for some impetus. The key focus, however, will remain on Friday’s release of the closely-watched US monthly jobs report – popularly known as NFP. This, along with the broader market risk sentiment, the US bond yields and the USD price dynamics will play a key role in determining the next leg of a directional move for the precious metal.”
“Gold could be in the process of forming a bullish double-bottom near the $1,677-76 region. The pattern, however, will be confirmed once the metal breakthrough a previous strong support breakpoint, now turned resistance near the $1,760-65 region. In the meantime, the $1,720 region might act as an immediate hurdle, above which a fresh bout of short-covering has the potential to lift the XAU/USD further towards the $1,742-44 supply zone.”
“Sustained weakness back below the $1,700 mark might turn the precious metal vulnerable to retest the $1677-76 strong support. Some follow-through selling will negate the bullish set-up and pave the way for an extension of the recent downward trajectory.”