Gold price stays on the back foot on Tuesday and edges lower toward $1,840. Although the benchmark 10-year US Treasury bond yield remains in negative territory below 3.95%, XAU/USD is finding it difficult to gather bullish momentum as investors adopt a cautious stance ahead of Powell’s testimony.
From a technical perspective, the $1,835 horizontal zone is likely to protect the immediate downside. Any subsequent decline might find some support near the $1.822-$1,821 area ahead of the $1,810 level and last week’s swing low, near the $1,805-$1,804 region.
This is closely followed by the $1,800 round-figure mark, which coincides with the 100-day Simple Moving Average (SMA). A convincing break below the latter will be seen as a fresh trigger for bearish traders and make Gold prices vulnerable to slide further.
On the flip side, the $1,856-$1,858 region seems to have emerged as an immediate hurdle, above which the XAU/USD could climb to the 100-day SMA, currently around the $1,870 area. This should act as a pivotal point, which if cleared decisively will set the stage for a further near-term appreciating move and allow bulls to reclaim the $1,900 mark with some intermediate barrier near the $1,884-$1,886 supply zone.
Related– Central Bank Gold Purchases Remain Steady Despite Potential Challenges in 2023
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