Gold Price Analysis: XAU/USD to set the stage for further losses on a break below $1700
|Gold added to the previous day's losses and lost some additional ground for the second consecutive session on Tuesday. XAU/USD is back closer to the $1700 mark and the next relevant target for XAU/USD bears is $1677-76, FXStreet’s Haresh Menghani briefs.
See – Gold Price Analysis: XAU/USD to remain under pressure amid rising US real yields and a strengthening USD – Credit Suisse
Key quotes
“Market participants now look forward to the US economic docket, highlighting the release of the Conference Board's Consumer Confidence Index. The data might influence the USD price dynamics and provide some impetus to the metal. Traders will further take cues from the US bond yields and the broader market risk sentiment. The key focus, however, will remain on Friday's release of the closely-watched US monthly jobs report (NFP).”
“Some follow-through selling below the $1700 mark will reaffirm the negative outlook and turn the yellow metal vulnerable to accelerate the fall back towards challenging multi-month lows, around the $1677-76 region touched earlier this month.”
“The trading range support breakpoint, around the $1720 region, now seems to act as immediate strong resistance. Any further recovery move will now be seen as a selling opportunity and remain capped near the $1732-33 supply zone. That said, a sustained move beyond might trigger a short-covering move and push the metal back towards challenging the $1745-47 strong horizontal resistance.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.