Gold stages a comeback in Asian trades on Tuesday, after having found brief support near $4,650.
The US Dollar uptrend stalls amid US-Iran de-escalation, easing US-India trade tensions and data disruption.
Gold fails to close Monday above the 21-day SMA, but RSI recaptures the midline on the daily chart.
Gold is reversing a part of the 15% correction from record highs of $5,598 early Tuesday, drawing support from uncertain-led by the US partial government shutdown and a broad US Dollar retreat.
Gold rebounds, despite an upbeat market mood, as a ‘sell-everything’ theme fades this Tuesday, with the focus turning back toward the US economic fundamentals.
The US government entered into its fourth day of a partial shutdown, as Democrats continued to demand immigration reforms as part of any funding deal to reopen the government.
The ongoing partial government shutdown once again prompted economic data disruption, as the BLS announced that it won’t release the January jobs report on Friday.
Meanwhile, the JOLTS Job Openings Survey, due on Tuesday, will also be delayed. The postponement of data could once again raise concerns over its impact on the Fed’s policy outlook. This seems to be somewhat weighing on the US Dollar , checking its uptrend and helping Gold find its feet.
The Greenback is also facing headwinds from a recovery in risk sentiment amid the de-escalation of geopolitical tensions between the United States and Iran and the US-India trade deal optimism.
Meanwhile, the long-standing US-India trade deal was finally sealed on Monday night, with the Trump administration having lowered the country-specific reciprocal tariff on Indian imports to 18% from 25%.
These geopolitical de-escalations, however, could also limit the upside in the traditional safe havens such as Gold. That being said, the resurgence of US economic concerns could keep the downside cushioned in the bright metal, for now.
Amid a data void, Gold traders will take cues from speeches by Fed policymakers for fresh insights on the US central bank’s path forward on interest rates, especially with the former Fed Governor Kevin Warsh set to take over the reins from June.
Daily technical analysis
The 21-day SMA rises above the 50-, 100-, and 200-day SMAs, and price holds above all of them, reinforcing a bullish bias. The longer SMAs continue to climb, signaling a well-established uptrend. The RSI at 51 reflects neutral momentum after cooling from recent overbought readings. Immediate dynamic support sits at the 21-day SMA at $4,779.68; holding above it would keep the bullish tone intact.
The 50- and 100-day SMAs trend higher beneath price and remain stacked below the 21-day SMA, highlighting sustained buying pressure. The 200-day SMA also rises, underscoring a firm broader positive structure. RSI near 50 caps momentum for now, and a decisive uptick would reassert the upside. A pullback could test support at the 50-day SMA at $4,499.64, with the broader bias staying positive while price holds above that level.
XAU/USD rebounds; will it last?
Gold is reversing a part of the 15% correction from record highs of $5,598 early Tuesday, drawing support from uncertain-led by the US partial government shutdown and a broad US Dollar retreat.
Gold rebounds, despite an upbeat market mood, as a ‘sell-everything’ theme fades this Tuesday, with the focus turning back toward the US economic fundamentals.
The US government entered into its fourth day of a partial shutdown, as Democrats continued to demand immigration reforms as part of any funding deal to reopen the government.
The ongoing partial government shutdown once again prompted economic data disruption, as the BLS announced that it won’t release the January jobs report on Friday.
Meanwhile, the JOLTS Job Openings Survey, due on Tuesday, will also be delayed. The postponement of data could once again raise concerns over its impact on the Fed’s policy outlook. This seems to be somewhat weighing on the US Dollar , checking its uptrend and helping Gold find its feet.
The Greenback is also facing headwinds from a recovery in risk sentiment amid the de-escalation of geopolitical tensions between the United States and Iran and the US-India trade deal optimism.
Meanwhile, the long-standing US-India trade deal was finally sealed on Monday night, with the Trump administration having lowered the country-specific reciprocal tariff on Indian imports to 18% from 25%.
These geopolitical de-escalations, however, could also limit the upside in the traditional safe havens such as Gold. That being said, the resurgence of US economic concerns could keep the downside cushioned in the bright metal, for now.
Amid a data void, Gold traders will take cues from speeches by Fed policymakers for fresh insights on the US central bank’s path forward on interest rates, especially with the former Fed Governor Kevin Warsh set to take over the reins from June.
Daily technical analysis
The 21-day SMA rises above the 50-, 100-, and 200-day SMAs, and price holds above all of them, reinforcing a bullish bias. The longer SMAs continue to climb, signaling a well-established uptrend. The RSI at 51 reflects neutral momentum after cooling from recent overbought readings. Immediate dynamic support sits at the 21-day SMA at $4,779.68; holding above it would keep the bullish tone intact.
The 50- and 100-day SMAs trend higher beneath price and remain stacked below the 21-day SMA, highlighting sustained buying pressure. The 200-day SMA also rises, underscoring a firm broader positive structure. RSI near 50 caps momentum for now, and a decisive uptick would reassert the upside. A pullback could test support at the 50-day SMA at $4,499.64, with the broader bias staying positive while price holds above that level.
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