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.