fundamental News - XAUUSD
Gold (XAU/USD) is easing off three-month highs, as the bulls face a hurdle at the technical resistance near the $1798-$1799 zone. Broad-based US dollar bounce amid a risk-off mood and upbeat comments from Fed Chair Powell weigh on gold. Although the XAU bulls remain hopeful amid subdued Treasury yields. Gold traders look forward to the US ISM-NY Business Conditions and Factory Orders after the ISM Manufacturing data disappointed markets.
XAU/USD has made significant progress since shifting higher from the late March swing low the second bottom of a Double Bottom formation the yellow metal still has considerable technical obstacles to overcome. A major psychological area and perhaps most-watched level right now is the 1,800 mark. A break higher would likely add some bullish energy to the yellow metal.
Moreover, the falling daily 100-SMA just moved below that level and could add overhead pressure. If gold fails to breach above 1,800, a drop to the 23.6% Fibonacci retracement level from the March to April move may be on the cards. If so, the daily 20-SMA could offer an additional layer of support.