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Gold has been stabilizing under $1880. XAU/USD is supported by weaker US yields but overbought conditions warrant caution, as FXStreet’s Dhwani Mehta notes.

Risk-on market mood overshadows the bearish undertone in the dollar and yields

“Investors cheer easing inflation fears and expectations of stronger global economic recovery, reflective of the 0.20% rise in the S&P 500 futures. However, it remains to be seen if the broader market optimism extends ahead of the key US CB Consumer Confidence data release.”  

“Looking ahead, if the selling in the US rates intensifies, gold price could rebound towards $1890.”

“A deeper pullback towards the $1850 psychological barrier cannot be ruled should the bulls fail to find acceptance above the critical $1890 static resistance.”

“If the $1890 hurdle is taken out convincingly, recapturing the $1900 mark remains inevitable. The next horizontal trendline resistance at $1918 could be on the buyers’ radars.”