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Gold (XAUU/USD) closed last week with heavy losses below $1,850 as the sharp decline amid rising US Treasury bond yields dragged the price below key support levels and triggered additional technical selloffs. The 200-day SMA at $1,840 is the last line of defense for the yellow metal ahead of $1,800, FXStreet’s Eren Sengezer briefs.

Key quotes

“The Consumer Price Index (CPI) report from the US on Wednesday will be the first significant data that could impact the USD’s market valuation. Although the Fed uses the Personal Consumption Expenditures (PCE) Price Index as its preferred gauge of inflation, a lower-than-expected reading could hurt the greenback.”

“On Thursday, Retail Sales and Initial Jobless Claims figures from the US will be looked upon for fresh catalysts. Finally, fourth-quarter GDP data will be featured in the Chinese economic docket on Friday ahead of the University of Michigan’s US Consumer Sentiment Index. Nevertheless, investors will keep a close eye on the performance of US T-bond yields and XAU/USD could find it difficult to turn north if yields continue to edge higher.”

“On the downside, the 200-day SMA at $1,840 aligns as the next critical support. With a daily close below that level, the price could target $1,820 (static support) ahead of $1,800 (psychological level/static support).”

“Resistances, could be seen at $1,870 (50-day SMA), $1,890 (100-day SMA) and $1,900 (psychological level).”