XAU/USD going steady towards 1,350.00
The yellow metal continues to gain momentum against the US Dollar for the fourth consecutive session. The pair remained stable during the first part of Friday, but eventually was pushed towards the 1,338.60 mark.
Meanwhile, Gold opened higher during the Asian session, while banks in the US are closed due to Martin Luther King Day. Traders are still awaiting new information about inflationary pressures in the US, thus being reluctant to buy the Greenback.
It is likely that the rate pushes even higher within this session towards the weekly R1 or the monthly R2 at 1,348.40 and 1,353.40, accordingly. The upper boundary of a five-week channel is also located in this area. High volatility is not expected in this session; however, in case of a fall, the pair should be supported by the 55-hour SMA circa 1,328.00.
Meanwhile, Gold opened higher during the Asian session, while banks in the US are closed due to Martin Luther King Day. Traders are still awaiting new information about inflationary pressures in the US, thus being reluctant to buy the Greenback.
It is likely that the rate pushes even higher within this session towards the weekly R1 or the monthly R2 at 1,348.40 and 1,353.40, accordingly. The upper boundary of a five-week channel is also located in this area. High volatility is not expected in this session; however, in case of a fall, the pair should be supported by the 55-hour SMA circa 1,328.00.
Comment:
Following a minor period of consolidation during the first half of Tuesday, the bearish sentiment prevailed in the market and thus sent Gold down to the 1,332.50 area. Subsequently, the rate returned for a re-test of its four-month high of 1.343.85, but fell lower once again.
These increasing fluctuations demonstrate that Dollar bulls might have finally increased in strength. However, no massive declines are expected today, as the pair should still be tended slightly upwards. At the time of the analysis, Gold was constrained by the 55– and 100-hour SMAs.
Technical indicators suggest that the southern barrier should hold strong.
Meanwhile, the nearest upside target is the aforementioned 1.343.85 mark, while the ultimate upside target for today should be the weekly R1 at 1,348.40.
These increasing fluctuations demonstrate that Dollar bulls might have finally increased in strength. However, no massive declines are expected today, as the pair should still be tended slightly upwards. At the time of the analysis, Gold was constrained by the 55– and 100-hour SMAs.
Technical indicators suggest that the southern barrier should hold strong.
Meanwhile, the nearest upside target is the aforementioned 1.343.85 mark, while the ultimate upside target for today should be the weekly R1 at 1,348.40.
Gold was stable against the US Dollar on Monday. The pair reached a new four-week high of 1,343.67 early in the session, and remained trading in the 1,345.00/1,340.00 area for the whole session.
As apparent on the chart, the yellow metal fell short from its nearest resistance—the weekly R1—at 1,348.39. Thus, bulls might try to realise these gains, while further advance is unlikely.
Meanwhile, technical indicators suggest that Gold could continue its movement sideways until the lower boundary of a steep one-week channel is reached circa 1,340.00. This area intersects with the 55-hour SMA that is expected to provide a strong support level.
The base scenario favours the same lack of momentum within the following session.