gold(XAUUSD) maintains modest increases as it continues its week-start recovery from a one-month low.
Early on Tuesday, the price of gold (XAUUSD) takes up bids to renew an intraday high above $1,876 while printing a two-day rise. By doing so, the brilliant metal continues its week-long recovery from a monthly low as the market’s cautious optimism and the US Dollar’s weakening work in favor of the XAUUSD bulls.
US Dollar carries the weight of the market’s circumspect optimism to drive XAUUSD recovery.
The slightly upbeat mood may have been influenced by President Joe Biden and US Treasury Secretary Janet Yellen’s remarks, which downplayed worries about a US recession. In a similar vein, US President Joe Biden made remarks that seemed to allay Sino-American concerns.
The S&P 500 Futures post modest gains, but US Treasury bond rates find it difficult to sustain their two-day recovery from the monthly low.
gold purchasers To combat, Fed Chair Powell needs to highlight recent solid US data.
The balloon incident did not harm relations between the US and China. Conversely, hawkish Fed discussions appear to support the US dollar as well as the rates on US Treasury bonds.
In an interview with Bloomberg, Raphel Bostic, president of the Federal Reserve Bank of Atlanta, stated that “the robust labor market probably indicates ‘we have to do a bit more work’. It’s important to note that the stronger US employment report and January activity data revived hawkish Fed bias last Friday, but that following Friday, a lack of instructions seemed to test the greenback bulls. In this environment,
Sino-American headlines also looked to US President Biden’s SOTU for urgent guidance.
The State of the Union (SOTU) remarks by US President Joe Biden and Federal Reserve Chairman Jerome Powell, however, appear to be worrying metal purchasers lately. Be aware that the US Dollar Index (DXY) is also declining. Futures traders in gold should focus on Fed Chair Powell’s ability to compliment the most recent positive US statistics as well as US President Biden’s SOTU.
Gold(XAUUSD) Technical Analysis
The oversold RSI (14), an improvement in the price of gold, and the impending bull cross on the MACD all suggest a comeback from the horizontal support area of $1,865 that has been in place for one month.
However, the XAU/immediate USD’s gain is restrained by the 200-Simple Moving Average (SMA) bordering $1,880.
Even if the price of gold continues to rise over $1,880, a three-week resistance zone at $1,900 may serve as the last line of defense for the sellers before prices move toward the resistance line from mid-January, which should be near $1,968 at the latest.
The upward-sloping support line from December 15, 2022, around $1,850, might test the metal’s additional downward, so a clear negative breach of $1,865 isn’t an open invitation to the Gold bears.
