Gold jumps to multi-day tops, around $1945-50 supply zone

  • A sharp intraday pullback in the USD drove some flows towards the dollar-denominated commodity.
  • Strong opening in the US equity markets, positive US bond yields might keep a lid on any strong gains.
  • Bulls need to wait for some follow-through buying before positioning for a move to the $1970-72 area.

Gold rallied around $20 during the early North American session and shot to three-day tops, near the $1945-50 supply zone in the last hour.

The US dollar witnessed a dramatic intraday turnaround from multi-week tops and has now drifted into the negative territory. This, in turn, assisted the dollar-denominated commodity to reverse an intraday dip to the $1920 area.

However, a combination of factors should hold investors from placing any aggressive bullish bets and keep a lid on any further gains. The US equity markets opened with strong gains and might undermine the precious metal’s safe-haven demand.

This coupled with a positive tone around the US Treasury bond yields would further cap the upside for the non-yielding yellow metal. Hence, it will be prudent to wait for some follow-through buying before positioning for any further appreciating move.

From a technical perspective, the commodity on Tuesday showed some resilience below the 50-day SMA and staged a goodish bounce from the $1906 area. A subsequent strength beyond the $1950 region will now be seen as a fresh trigger for bullish traders.

The commodity might then accelerate the momentum further towards the $1970-72 horizontal resistance. The mentioned barrier coincides with a four-week-old descending trend-line, which if cleared will pave the way for additional gains for the metal.

Technical levels to watch

XAU/USD

OVERVIEW
Today last price 1943.24
Today Daily Change 11.46
Today Daily Change % 0.59
Today daily open 1931.78
TRENDS
Daily SMA20 1946.48
Daily SMA50 1909.41
Daily SMA100 1817.48
Daily SMA200 1695.53
LEVELS
Previous Daily High 1940.9
Previous Daily Low 1906.62
Previous Weekly High 1992.42
Previous Weekly Low 1916.42
Previous Monthly High 2075.32
Previous Monthly Low 1863.24
Daily Fibonacci 38.2% 1927.81
Daily Fibonacci 61.8% 1919.71
Daily Pivot Point S1 1911.97
Daily Pivot Point S2 1892.15
Daily Pivot Point S3 1877.69
Daily Pivot Point R1 1946.25
Daily Pivot Point R2 1960.71
Daily Pivot Point R3 1980.53


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Anonymous
2 months ago

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