VOT Research Desk
Early on Tuesday morning, the gold price (XAU/USD) records its first daily gains in four days around $1,745 per ounce.
In doing so, the shiny metal supports the US Dollar’s general decline on what is likely to be a slow day ahead of the significant data and events slated for publication on Wednesday.
The US Dollar Index (DXY), however, plunges to 107.55, down 0.25 percent intraday, breaking a three-day uptrend. In light of recent challenges to the hawkish concerns surrounding the US Federal Reserve, the greenback’s gauge tracks the US Treasury yields.
In view of the day’s light calendar, risk catalysts will be crucial in predicting intraday XAU/USD movements.
To that end, news stories pertaining to the economic situation in China, predictions of the Fed’s upcoming actions, and the yields on US Treasury bonds will be essential for providing precise guidance.
|
Daily SMA20 |
1702.09 |
|
Daily SMA50 |
1681.62 |
|
Daily SMA100 |
1711.91 |
|
Daily SMA200 |
1801.46 |
Gold Technical Analysis
To give the XAU/USD selling encouragement, the price of gold is showing a one-week-old bearish channel below the 50-SMA. The negative MACD signals further bolster the tendency toward the downside.
However, the recovery advances that oppose the bearish chart pattern are supported by the RSI (14)’s return from oversold zone as it approaches the indicated channel’s resistance line near $1,752.
The XAU/USD run-up above $1,752 needs confirmation from the 50-SMA resistance level of $1,760 in order to persuade Gold buyers to challenge the monthly peak at $1,786.
On the other hand, a convergence of the prior resistance line from early October and the bottom line of the aforementioned bearish channel identifies $1,730 as the primary support that sellers must take before regaining control.
The 100-SMA support near $1,710 and the $1,700 mark also serve as a downside filter.
