fundamental News - XAUUSD
Gold’s price reversal was put on pause early this week as rising
Treasury yields worked to undermine the recent breakout above
resistance. Recent price action has established an encouraging technical
backdrop for the precious metal after a double bottom
formation gave way to a quick surge above resistance at $1,765. Now
with resistance behind it, gold can take aim at the $1,800 mark with
prior barriers offering potential support moving forward.
That said, a gold price rally is far from certain and risks remain.
US Treasury yields remain the paramount concern for gold bulls as even a
slight uptick in yields can work to undermine XAU/USD. Aside from the
risk of rising Treasury yields, fund flow
data reveals investors continue to reduce their exposure to the
gold-tracking GLD exchange traded fund even as price has begun to turn
higher.
XAU/USD on verge of significant correction, the price is showing
signs of exhaustion on the top side of $1,790. This come as the daily
chart has a bullish close, and there is room to go on the upside.
A deeper 62% retracement will meet with the daily 20-SMA and the neckline of the W-formation.
There has been a strong rejection of the $1,790 area which
reinforces the downside bias towards the old resistance area that would
be expected to act as new support.