The XAU/USD struggle with $3,250 extends, what’s next?
Gold price keeps range play intact below $3,250 early Tuesday.
The US Dollar draws support from US trade deals optimism but upside appears limited.
Gold price remains stuck between 21-day SMA and 50-day SMA amid bearish RSI.
Gold price has returned to red early Tuesday, having failed to take out the $3,250 barrier once again. The downtick in Gold price could be linked to a tepid US Dollar recovery as traders await US trade talks and Fedspeak for a fresh directional impetus.
The USD is looking to stabilize following the previous decline, led by the revival of the ‘Sell America’ theme, which triggered a big sell-off in the US assets across the financial markets. Moody’s downgraded the US sovereign credit rating on Friday by one notch from its pristine “Aaa” rating to “Aa1”, withering the ‘Brand USA’.Investors remained wary about the long-term fiscal picture for the US. In response, risk-off flows dominated on Monday and lifted the traditional safe-haven Gold price.
In Tuesday’s trading so far, the Greenback is holding the overnight bounce on renewed optimism over the potential US trade deals with India, South Korea and Japan.South Korea and the US will meet over a second round of technical discussions on Tuesday in Washington over the latter’s reciprocal tariff measures. The talks will span over three days.
Increased hopes of a ceasefire between Russia and Ukraine also act as a headwind to the traditional store of value, Gold.
This has helped the GOLD limit its downside. Looking ahead, it remains to be seen if Gold price holds firm to bearish pressures. Speeches from a bunch of Fed policymakers and trade talks will continue to drive the USD’s performance and the Gold price action, in the absence of high-impact US data releases.
Daily technical analysis
Technically, Gold price remains confined in a range, with the upside capped by the 21-day SMA at $3,289 while buyers continue to find support at the 50-day SMA at $3,175.The 14-day RSI sits beneath the midline, near 47.50, maintaining the downside risks.
So long as the price stays above the throwback support of the 50-day SMA, a brief recovery toward the 21-day SMA remains in the offing.
However, Gold buyers need to take out the immediate resistance at the $3,250 psychological level to march toward the 21-day SMA.The next topside target is at the falling trendline resistance at $3,386.
On the downside, if sellers manage to crack the 50-day SMA on a daily closing basis, a fresh sell-off could be fuelled toward the $3,100 mark.The April 10 low of $3,072 would then come to the rescue of buyers.
The XAU/USD struggle with $3,250 extends, what’s next?
Gold price has returned to red early Tuesday, having failed to take out the $3,250 barrier once again. The downtick in Gold price could be linked to a tepid US Dollar recovery as traders await US trade talks and Fedspeak for a fresh directional impetus.
The USD is looking to stabilize following the previous decline, led by the revival of the ‘Sell America’ theme, which triggered a big sell-off in the US assets across the financial markets. Moody’s downgraded the US sovereign credit rating on Friday by one notch from its pristine “Aaa” rating to “Aa1”, withering the ‘Brand USA’.Investors remained wary about the long-term fiscal picture for the US. In response, risk-off flows dominated on Monday and lifted the traditional safe-haven Gold price.
In Tuesday’s trading so far, the Greenback is holding the overnight bounce on renewed optimism over the potential US trade deals with India, South Korea and Japan.South Korea and the US will meet over a second round of technical discussions on Tuesday in Washington over the latter’s reciprocal tariff measures. The talks will span over three days.
Increased hopes of a ceasefire between Russia and Ukraine also act as a headwind to the traditional store of value, Gold.
This has helped the GOLD limit its downside. Looking ahead, it remains to be seen if Gold price holds firm to bearish pressures. Speeches from a bunch of Fed policymakers and trade talks will continue to drive the USD’s performance and the Gold price action, in the absence of high-impact US data releases.
Daily technical analysis
Technically, Gold price remains confined in a range, with the upside capped by the 21-day SMA at $3,289 while buyers continue to find support at the 50-day SMA at $3,175.The 14-day RSI sits beneath the midline, near 47.50, maintaining the downside risks.
So long as the price stays above the throwback support of the 50-day SMA, a brief recovery toward the 21-day SMA remains in the offing.
However, Gold buyers need to take out the immediate resistance at the $3,250 psychological level to march toward the 21-day SMA.The next topside target is at the falling trendline resistance at $3,386.
On the downside, if sellers manage to crack the 50-day SMA on a daily closing basis, a fresh sell-off could be fuelled toward the $3,100 mark.The April 10 low of $3,072 would then come to the rescue of buyers.
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