Gold extended gains smartly past $1,700. Nevertheless, strategists at TD Securities expect XAU/USD to reverse recent rally towards $1,580.
Firm resistance aligns at $1,763-73
“The yellow metal is trading at the 50-day moving average, which we judge should serve as the first level of resistance. If there is sufficient momentum to settle materially above that level, the 100-day moving average/Fib ($1,763-73) points should be an even firmer resistance zone.”
“We see gold losing steam and again drifting toward our target of $1,580 over the coming months, as the Fed continues to stick to its hawkish plan to move the Fed Funds above the 4.5% mark and keep rates in restrictive mode until inflation is licked. Or at least until such time, there is a high probability that inflation can move close to target. This will take well into 2023 or beyond.”
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