Gold Price Forecast: XAU/USD falters near $1875-76 resistance zone
Gold struggled to capitalize on the weekly bullish gap opening on Monday and remained capped near the $1875-76 resistance zone. The retail-inspired pressure on hedge funds shifted to silver and the spillover effect provided a modest lift to the commodity. That said, a combination of factors kept a lid on any further gains. A solid rebound in the equity markets held bulls from placing any aggressive bets around the safe-haven precious metal. Apart from this, a broad-based US dollar strength further weighed on the dollar-denominated commodity.
The greenback was back in demand amid doubts over the timing and size of the US fiscal stimulus measures. In fact, a group of Republican senators urged the US President Joe Biden to cut the price tag for his proposed economic stimulus package and discussed a $618 billion alternative plan. Read more...
Gold Price Analysis: XAU/USD to push toward $1900 on a break above $1875
Gold (XAU/USD) struggled to capitalize on the weekly bullish gap opening on Monday and remained capped near the $1875-76 resistance zone. A modest uptick in the US bond yields prompted some fresh selling around the yellow metal on Tuesday but concerns about COVID-19 vaccine supplies might help limit any further losses for the commodity, FXStreet’s Haresh Menghani reports.
“Concerns about the delay in COVID-19 vaccine supplies helped limit the downside. Moving ahead, the broader market risk sentiment will play a key role in influencing the intraday movement for the commodity. This, along with the US bond yields and the USD price dynamics, will also be looked upon for some meaningful trading opportunities.” Read more...
Gold Futures: Extra gains on the table
Traders added nearly 8K contracts to their open interest positions in gold futures markets at the beginning of the week, according to preliminary readings from CME Group. Volume, instead, extended the downtrend and dropped by around 21.3K contracts.
Monday’s positive price action in gold was amidst rising open interest, which remains supportive of extra gains in the very near-term. Against this, the precious metal still targets the 100-day SMA in the $1,880 level per ounce in the short-term horizon. Read more...
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