XAU/USD awaits acceptance above $3,300 as buyers return
Gold price extends its upbeat momentum to regain $3,300 early Wednesday.
The US Dollar remains weighed by economic concerns, renewed US-China trade tensions and geopolitics.
Gold price breaks the range as the daily RSI flips bullish while defending the key technical support.
Gold price is extending its upswing into the third consecutive day in Asian trading on Wednesday. Buyers look to regain the $3,300 on a sustained basis amid persistent US weakness and heightened geopolitical tensions.
Markets have turned cautious, allowing increased safe-haven flows into the Gold price. US economic concerns resurfaced after last week’s downgrade of the nation’s sovereign credit rating by Moody’s and amid a likely passage of a bill on Trump’s sweeping tax cuts. This approval is expected to widen the country’s fiscal deficit, further adding credence to the ‘Sell American’ campaign, maintaining the bearish pressures on the USD.
Further, uncertainty over US trade policies and a renewed spat between the US and China over chips alongside news that Group of Seven (G7) nations are mulling over coordinated efforts to impose levies on low-value Chinese raise concerns over the global economic outlook, exerting additional downside pressure on the Greenback while lifting the traditional safe-haven Gold price to fresh eight-day highs just above the $3,300 threshold.
Gold price also takes advantage of renewed geopolitical tensions. On Tuesday, Iran’s Supreme Leader noted that he doubts that nuclear talks with the US will lead to a new agreement, saying it had made “excessive and outrageous” demands on uranium enrichment. Moreover, markets remain wary about any progress in the Russia-Ukraine peace talks.
Looking ahead, Gold price will continue to display strong bullish potential, with recent speeches from Fed policymakers signalling caution amid heightened economic uncertainty. Expectations surrounding increased Fed rate cuts are back on the table, aiding the upside in the non-interest-bearing Gold price.
Daily technical analysis
Gold price broke the recent range between the 21-day SMA and 50-day SMA to the upside on Tuesday as the 14-day RSI recaptured the midline.
Additionally, Gold price had defended the critical throwback support near $3,165, which is the 61.8% Fibo level of April’s record rally.This Golden Ratio support helped Gold price staged a decent comeback, with more upside likely on the cards.
Gold buyers need acceptance above the 21-day SMA at $3,289 on a daily candlestick closing basis for a sustained uptrend,The next topside target is at the falling trendline resistance at $3,387, above which the $3,400 level will be threatened.
Conversely, if sellers fight back control, the 50-day SMA at $3,185 will offer initial support, below which the abovementioned Fibo level will be retested.A fresh sell-off could be fueled toward the $3,100 mark on a failure to resist that crucial support.
XAU/USD awaits acceptance above $3,300 as buyers return
Gold price is extending its upswing into the third consecutive day in Asian trading on Wednesday. Buyers look to regain the $3,300 on a sustained basis amid persistent US weakness and heightened geopolitical tensions.
Markets have turned cautious, allowing increased safe-haven flows into the Gold price. US economic concerns resurfaced after last week’s downgrade of the nation’s sovereign credit rating by Moody’s and amid a likely passage of a bill on Trump’s sweeping tax cuts. This approval is expected to widen the country’s fiscal deficit, further adding credence to the ‘Sell American’ campaign, maintaining the bearish pressures on the USD.
Further, uncertainty over US trade policies and a renewed spat between the US and China over chips alongside news that Group of Seven (G7) nations are mulling over coordinated efforts to impose levies on low-value Chinese raise concerns over the global economic outlook, exerting additional downside pressure on the Greenback while lifting the traditional safe-haven Gold price to fresh eight-day highs just above the $3,300 threshold.
Gold price also takes advantage of renewed geopolitical tensions. On Tuesday, Iran’s Supreme Leader noted that he doubts that nuclear talks with the US will lead to a new agreement, saying it had made “excessive and outrageous” demands on uranium enrichment. Moreover, markets remain wary about any progress in the Russia-Ukraine peace talks.
Looking ahead, Gold price will continue to display strong bullish potential, with recent speeches from Fed policymakers signalling caution amid heightened economic uncertainty. Expectations surrounding increased Fed rate cuts are back on the table, aiding the upside in the non-interest-bearing Gold price.
Daily technical analysis
Gold price broke the recent range between the 21-day SMA and 50-day SMA to the upside on Tuesday as the 14-day RSI recaptured the midline.
Additionally, Gold price had defended the critical throwback support near $3,165, which is the 61.8% Fibo level of April’s record rally.This Golden Ratio support helped Gold price staged a decent comeback, with more upside likely on the cards.
Gold buyers need acceptance above the 21-day SMA at $3,289 on a daily candlestick closing basis for a sustained uptrend,The next topside target is at the falling trendline resistance at $3,387, above which the $3,400 level will be threatened.
Conversely, if sellers fight back control, the 50-day SMA at $3,185 will offer initial support, below which the abovementioned Fibo level will be retested.A fresh sell-off could be fueled toward the $3,100 mark on a failure to resist that crucial support.
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