OctaFX | OctaFX Forex Broker
Open trading account
Back

XAU/USD Price Analysis: Retreats further from 3-week tops, back near $1570 level

  • Gold turns lower sharply amid improving risk sentiment, pickup in the US bond yields.
  • Sustained weakness below 50-hour SMA might have prompted some technical selling.

Gold finally broke down of its consolidative trading range held over the past 24-hours or so and dropped to fresh session lows, around the $1572-71 region in the last hour, filling the weekly bullish gap.

A goodish recovery in the global risk sentiment dented demand for traditional safe-haven assets, which coupled with a pickup in the US Treasury bond yields exerted pressure on the non-yielding yellow metal.

Meanwhile, the latest leg of a sudden fall over the past hour or so could further be attributed to some technical selling on a sustained weakness below 50-hour SMA support near the $1576 region.

Oscillators on the 1-hourly chart have been drifting lower within the negative territory and support prospects for an extension of the corrective slide from three-week tops set in the previous session.

However, technical indicators on 4-hourly/daily charts have managed to hold with a bullish bias, warranting some caution for aggressive bearish traders and positioning for any deeper losses.

Gold 1-hourly chart

fxsoriginal

 

When are the US durable goods orders and how could they affect EUR/USD?

Tuesday's US economic docket highlights the release of durable goods orders data for December. The US Census Bureau is scheduled to release the monthl
Read more Previous

Russia Unemployment Rate meets forecasts (4.6%) in December

Russia Unemployment Rate meets forecasts (4.6%) in December
Read more Next
Start livechat