FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
91%
HFM information and reviews
HFM
89%

XAU/USD snaps two-day uptrend above $1,800 amid mixed sentiment


28 December 2022

Gold price extends pullback from six-month high, renews intraday low of late. Easing optimism surrounding China, fading recession woes in the US weigh on XAU/USD price. Holiday season, immediate support line challenges Gold’s downside but bulls need validation from $1,825. Gold price (XAU/USD) remains pressured around $1,810 while snapping two-day winning streak during the initial trading hour of Wednesday’s European session. In doing so, the yellow metal fails to justify the latest retreat in the US Treasury bond yields, as well as the US Dollar Index (DXY), amid the holiday season.

US Dollar Index (DXY) takes offers to reverse the early Asian session gains, as well as the previous day’s rebound, while refreshing intraday low near 104.10. That said, the US 10-year Treasury yields take a U-turn from the six-week high, marked on Tuesday, while marking a 2.3 basis points (bps) of decline to 3.83% by the press time.

The reason for Gold’s latest weakness could be linked to easing optimism surrounding China’s reopening as the US conveys dissatisfaction from the dragon nation’s virus numbers. As a result, the US is searching for way to impose new COVID-19 measures on travelers to the United States from China.

XAU/USD snaps two-day uptrend above $1,800 amid mixed sentiment

On the other hand, a Researcher from the Federal Reserve Bank of San Francisco’s Economic Research Department ruled out odds favoring the US economic slowdown for at least the upcoming two quarters. Amid these plays, the US stock futures print mild gains while equities in Europe and the UK remain mildly offered while tracing Asia-Pacific shares and Wall Street’s mixed closing. To sum up, Gold portrays the market’s indecision while consolidating the recent gains.

Gold price technical analysis

A triple top around $1,825 and a pullback from the overbought RSI justifies the latest declines in the Gold price. However, a one-week-old ascending support line, around $1,805 by the press time, quickly followed by the 200-HMA level surrounding the $1,800 threshold, challenges the Gold bears.

In a case where Gold drops below $1,800 round figure, a quick drop to the previous weekly low near $1,785 can’t be ruled out. Alternatively, a successful break of the $1,825 hurdle will be enough for the Gold buyers to aim for June’s peak surrounding $1,880.

Overall, Gold price slips to the bear’s radar after failing to keep buyers on the board. Though, the downside mood needs validation from the $1,800 mark.

#source

Share: Tweet this or Share on Facebook


Related

WN04 data: Oil and Gold price
WN04 data: Oil and Gold price

This preview of weekly data looks at USOIL and XAUUSD, where both commodities seem to pause their aggressive bullish rallies following the thinning trade volumes of the Chinese New Year...

26 Jan 2023

Gold trading in 2023: Is now a good time to invest?
Gold trading in 2023: Is now a good time to invest?

Are you thinking about investing in gold in 2023? With the increasing financial uncertainty around the world, many traders are looking to gold as a safe-haven asset...

26 Jan 2023

Stocks in a Rally!
Stocks in a Rally!

USDIndex settled at 101.50, Wall Street rallied on the back of tech amid ongoing hopes for a downshift in Fed rate hikes amid a potential moderation in inflation this week...

25 Jan 2023

USD Index remains under pressure near 102.00
USD Index remains under pressure near 102.00

The index kept the consolidation well in place near 102.00. The resumption of the risk-on mood weighs on the dollar. Flash Manufacturing/Services PMIs come next in the US docket...

24 Jan 2023

USD Index remains under pressure below the 102.00 mark
USD Index remains under pressure below the 102.00 mark

The US Dollar started the new week under modest bearish pressure and the US Dollar Index declined below 102.00 during the Asian trading hours on Monday...

23 Jan 2023

Ford shares and trucks are getting traction in 2023
Ford shares and trucks are getting traction in 2023

In just two weeks, Ford shares (F) soared from $10.86 (USD) to $13.42. Traders are wondering what’s causing the surge and whether it will continue throughout 2023...

23 Jan 2023


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
Libertex information and reviews
Libertex
83%
Vantage information and reviews
Vantage
83%

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.