Gold Price Analysis: XAU/USD bulls struggle above $1,700 amid mixed clues

Having begun the week on a firmer footing, gold prices take rounds to $1,728 during the early Asian session on Monday. The yellow metal ticked-up to $1,727.60 and rushed to $1,730.40 amid the initial minutes of the day-start trading. In doing so, the commodity keeps Friday’s recovery moves while cheering consolidation in the risk catalysts.

Bulls and bears jostle ahead of FOMC…

Although comments from US Treasury Secretary Janet Yellen and AstraZeneca’s optimism seem to have favored gold buyers off-late, traders remain cautious ahead of this week’s Fed meeting, which in turn tests the precious metal buyers.

US Treasury Secretary Yellen again rejected reflation fears despite showing concerns over a short-term pick-up in rates. The same paves the way for the US central bankers to placate bond bears by pouring cold water on the face of expectations suggesting rolling back of the easy money policy.

On the same line, AstraZeneca defied calls of blood clotting due to its covid vaccine usage. Even so, Netherlands suspends the use of the vaccine until March 29, which in turn probes the risk-on mood.

Elsewhere, risks remain clueless amid a lack of major catalysts ahead of China’s January month Retail Sales and Industrial Production data.

Against this backdrop, S&P 500 Futures seesaw around 3,930 whereas commodities and Antipodeans keep late Friday’s recovery moves amid market consolidation.

Moving on, China’s Retail Sales may jump 32% from 4.6% prior while Industrial Production may have rallied 30% versus 7.3% prior. While these figures may help gold prices to keep the early-week strength, any surprises from the risks may recall the bears lurking below key resistances.

Technical analysis

Although sustained bounce of a descending trend line from August 2020, currently around $1,670, favors short-term gold buyers, 21-day SMA and November 2020 low, respectively near $1,745 and $1,765, guard the metal’s immediate upside.