Gold Price Analysis: XAU/USD to attempt a bounce to $1884
In Tuesday’s trading so far, gold price is consolidating the previous losses, finding some support from the retreat in the US Treasury yields. As FXSteet’s Dhwani Mehta notes, gold’s technical setup suggests a lack of clear directional bias, with US data in focus.
XAU/USD bears lack conviction ahead of US Retail Sales
“If risk-aversion deepens going forward, the US dollar could likely see a revival in the safe-haven bids, which will accelerate the decline in gold price.”
“The focus now shifts towards the US Retail Sales data, with a disappointment likely to ease the inflationary concerns, boosting odds for the Fed’s tapering announcement while rendering gold-negative.”
“The bulls could look to retest the trendline support, now at $1884 if the recovery momentum gathers steam in the day ahead. Ahead of that the $1870 round number and Monday’s high of $1878 needs to get cleared.”
“If the daily lows of $1858 give way, the downside could resume towards the 200-Daily Moving Average (DMA) at $1840 cannot be ruled out.”