Gold remains on the defensive for the second successive session on Tuesday as XAU/USD's post-NFP move-up has faltered near the $1,832-34 hurdle. However, the downside remains cushioned, warranting some caution for bearish traders, according to FXStreet’s Haresh Menghani.
XAU/USD’s downside remains cushioned
“The US bond yields will continue to play a key role in influencing the USD price dynamics. This, along with the broader market risk sentiment, might provide some impetus to gold and allow traders to grab some meaningful opportunities.”
“The recent strong rebound from multi-month lows faltered near the $1,832-34 strong resistance zone. This should now act as a key pivotal point for short-term traders, which if cleared decisively will set the stage for a further near-term appreciating move. Gold might then accelerate the momentum towards the $1,853-55 area, en-route the next relevant hurdle, near the $1,869-70 region.”
“The 100-day SMA, around the $1,815 level, closely followed by the very important 200-day SMA, near the $1,810 region, could protect the immediate downside.”
“A slide below the $1,800 mark would suggest that the upward momentum is waning and prompt some technical selling. The corrective slide could then get extended and drag the XAU/USD back towards the $1,778-74 congestion zone.”
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