Gold (XAU/USD) has stalled its three-day decline but struggles to find its feet amid the upbeat market mood. Weaker DXY lends support to XAU/USD but the daily chart warrants caution, FXStreet’s Dhwani Mehta reports.
The riskier assets such as the Treasury yields are on the rise, weighing negatively on the non-yielding gold. The renewed US-Iran geopolitical tensions fail to attract the gold buyers, as the daily technical chart continues to paint a bleak picture, in absence of fresh economic releases from the US.
Gold price faces stiff resistance around $1827. A test of the Feb 8 low of $1808 remains on the sellers’ radar, below which the January 18 low of $1803 could be put at risk. The bearish bias remains intact so long as the price holds below the 21-DMA at $1838. The next powerful hurdle awaits at $1858, the confluence of the 50 and 200-HMAs.