Gold edged lower for the second consecutive session on Tuesday, albeit lacked follow-through. Technically, XAU/USD defends the ascending trend-line/200-hour SMA confluence, as FXStreet’s Haresh Menghani notes.
See – Gold Price Analysis: XAU/USD to hover around $1850 by end-March 2022 – Deutsche Bank
“The focus will remain on Fed Chair Jerome Powell and Treasury Secretary Janet Yellen’s joint testimony on the quarterly CARES Act report before the House Financial Services Committee. Traders will further take cues from the broader market risk sentiment, the US bond yields and the USD price dynamics to grab some meaningful opportunities.”
“Gold, so far, has managed to defend the 200-hour SMA, near the $1730 region, which coincides with a two-week-old ascending trend-line and should now act as a key pivotal point for short-term traders. A convincing breakthrough will mark a bearish breakdown and turn the XAU/USD vulnerable to accelerate the slide towards the $1700 mark. Some follow-through selling will set the stage for a drop towards retesting multi-month lows, around the $1677-76 region.”
“The $1740-42 supply zone might continue to cap the immediate upside. A sustained move beyond might trigger a short-covering move towards challenging the previous strong horizontal support, now turned resistance near the $1760-65 region. Above the mentioned barrier, the metal seems all set to aim back to reclaim the $1800 mark in the near-term.”