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.
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.
Technical analysis
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.
Expectation: bearish