FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

XAU/USD flirts with daily low, around $1,815

12 January 2022

Gold witnessed some selling on Wednesday and eroded a part of the overnight gains. An uptick in the US bond yields revived the USD demand and weighed on the metal. The downside seems limited as investors await the latest US consumer inflation print. Gold edged lower on Wednesday and snapped three successive days of the winning streak, eroding a part of the previous day's strong gains to a four-day high. The XAU/USD remained on the defensive through the early part of the European session and was last seen hovering near the daily low, around the $1,815 region. The upbeat market mood – as depicted by a generally positive tone around the equity markets – was seen as a key factor that acted as a tailwind for the safe-haven precious metal. Apart from this, the emergence of some US dollar buying exerted some pressure on the dollar-denominated commodity.

As investors looked past Fed Chair Jerome Powell's less hawkish comments on Tuesday, the prospects for an eventual Fed lift-off in March extended some support to the greenback. Apart from this, an uptick in the US Treasury bond yields further underpinned the buck and weighed on the non-yielding gold. It is worth recalling that Powell, during his renomination hearing before the Senate, said that it could take several months to decide on running down the central bank's balance sheet. This eased fears about a sudden withdrawal of monetary support, which dragged the USD to its weakest level since November.

The downside, however, remains cushioned as investors seemed reluctant to place aggressive bets ahead of Wednesday's release of the latest US consumer inflation figures. Gold, which is considered a hedge against higher inflation, could benefit from hotter-than-expected US CPI print. Conversely, a softer reading would be enough to keep the USD bulls on the defensive and provide a goodish lift to the commodity. The fundamental backdrop supports prospects for a further near-term appreciating move for the XAU/USD, though bulls preferred to wait on the sidelines ahead of the key data risk.

Technical outlook

From a technical perspective, the overnight convincing break through the $1,810-12 horizontal zone adds credence to the positive outlook. Hence, any further pullback is more likely to attract fresh buying and remain limited near the $1,800 mark. Failure to defend the mentioned handle might prompt some technical selling and accelerate the fall towards the $1,790 region. This is closely followed by support marked by an upward sloping trend-line extending from August 2021 swing low, which if broken decisively would be seen as a fresh trigger for bearish traders.

On the upside, bulls are likely to aim back to test a static resistance near the $1,830-32 region. A sustained strength beyond would set the stage for a further near-term appreciating move and push gold prices towards the next relevant hurdle near the $1,848-50 region. The momentum could further get extended towards the $1,869-70 area en-route the $1,877 zone, or a multi-month high touched in mid-November.


Share: Tweet this or Share on Facebook


XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP
XAU/USD retreats from multi-month top amid modest USD recovery, ahead of US GDP

Gold price pulls away from a fresh multi-month top amid a modest US Dollar strength. Bets for smaller rate hikes by Federal Reserve, recession fears should help limit losses...

26 Jan 2023

Microsoft: Still Trapped Within Descending Channel
Microsoft: Still Trapped Within Descending Channel

Microsoft Corp., an American multinational technology conglomerate currently ranked the third largest company by market capitalization ($1.728T) which actively engages...

24 Jan 2023

Same story new week
Same story new week

Chinese New Year celebrations – many centres are closed in Asia. Treasuries sagged to end on a bearish week. USDIndex at 101.30 low as the market continued...

23 Jan 2023

EUR is stuck consolidating
EUR is stuck consolidating

EURUSD is going to consolidate. The current quote is 1.0810. In the nearest future the EUR might experience some local pressure because the weather in Europe has changed...

20 Jan 2023

EURGBP Fails To Break 0.89
EURGBP Fails To Break 0.89

In today’s European session, Germany’s final CPI rate for December registered 8.6% on an annual basis, in line with market expectations and the previous value...

18 Jan 2023

XAUUSD: Weekly Review 16-20 January 2023
XAUUSD: Weekly Review 16-20 January 2023

Gold jumped to start 2023 with strong gains, as the positive momentum from December carried over into the new year. Last year’s headwinds, particularly the strengthening...

17 Jan 2023

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
Libertex information and reviews
Vantage information and reviews

© 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.