Gold price scales higher as US bond yields extend fall and Middle East tensions continue to rise
Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session.
Technical Overview From a technical perspective, bulls might still wait for a sustained move beyond the $2,040-2,042 supply zone before placing fresh bets and positioning for any further gains. Given that oscillators on the daily chart have just started moving into the positive territory, the Gold price could then climb to the $2,077 resistance zone before aiming to reclaim the $2,100 round-figure mark.
On the flip side, the overnight swing low, around the $2,020-2,019 area, now seems to protect the immediate downside ahead of the $2,012-2,010 zone and the $2,000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and expose the 100-day SMA, currently near the $1,978-1,977 region. The Gold price could eventually drop to the very important 200-day SMA, near the $1,964 region.
Fundamental Overview
Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session. Fears that escalating tensions in the Middle East could trigger a wider war in the region keep a lid on the recent optimism in the markets. Apart from this, a further decline in the US Treasury bond yields turns out to be a key factor lending support to the non-yielding yellow metal.
That said, the emergence of some US Dollar (USD) buying might hold back traders from placing aggressive bullish bets around the Gold price. Investors might also prefer to wait on the sidelines ahead of the crucial FOMC monetary policy meeting starting this Tuesday, which might provide cues about future rate decisions and provide a fresh directional impetus to the XAU/USD. This, in turn, warrants some caution before positioning for any further intraday appreciating move.
Heading into the key central bank event risk, traders on Tuesday will take cues from the US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and JOLTS Job Openings data. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the Gold price. Furthermore, the broader risk sentiment should contribute to producing short-term trading opportunities around the safe-haven metal.
Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session.
Technical Overview From a technical perspective, bulls might still wait for a sustained move beyond the $2,040-2,042 supply zone before placing fresh bets and positioning for any further gains. Given that oscillators on the daily chart have just started moving into the positive territory, the Gold price could then climb to the $2,077 resistance zone before aiming to reclaim the $2,100 round-figure mark.
On the flip side, the overnight swing low, around the $2,020-2,019 area, now seems to protect the immediate downside ahead of the $2,012-2,010 zone and the $2,000 psychological mark. A convincing break below the latter will be seen as a fresh trigger for bearish traders and expose the 100-day SMA, currently near the $1,978-1,977 region. The Gold price could eventually drop to the very important 200-day SMA, near the $1,964 region.
Fundamental Overview
Gold price (XAU/USD) gains some positive traction for the second straight day on Tuesday and steadily climbs back closer to the $2,040-2,042 supply zone during the first half of the European session. Fears that escalating tensions in the Middle East could trigger a wider war in the region keep a lid on the recent optimism in the markets. Apart from this, a further decline in the US Treasury bond yields turns out to be a key factor lending support to the non-yielding yellow metal.
That said, the emergence of some US Dollar (USD) buying might hold back traders from placing aggressive bullish bets around the Gold price. Investors might also prefer to wait on the sidelines ahead of the crucial FOMC monetary policy meeting starting this Tuesday, which might provide cues about future rate decisions and provide a fresh directional impetus to the XAU/USD. This, in turn, warrants some caution before positioning for any further intraday appreciating move.
Heading into the key central bank event risk, traders on Tuesday will take cues from the US economic docket – featuring the release of the Conference Board's Consumer Confidence Index and JOLTS Job Openings data. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the Gold price. Furthermore, the broader risk sentiment should contribute to producing short-term trading opportunities around the safe-haven metal.
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