GOLD buyers take a breather before the next leg north
Gold price clinches fresh two-month highs above $3,450, then retreats.
US Dollar stays supported amid haven demand due to deepening Israel-Iran row.
The path of least resistance appears to the upside for Gold price ahead of Fed.
Gold price has briefly pulled back from fresh two-month highs reached just above $3,450 early Monday. All eyes remain on the deepening Israel and Iran conflict and trade headlines for fresh trading impetus.
The USD seems to have regained its lost footing in Asian trading on Monday, starting a new week on the front across its major currency rivals amid sagging investors’ confidence, leading to the minor pullback in Gold price.
Intensifying Iranian missiles attacks on Israel over the weekend, which continues well into early Monday, remains a drag on risk sentiment even as markets try to take into their stride and divert their attention to the upcoming central banks’ policy announcements this week.
Gold buyers also face exhaustion after rising as much as 4% in the previous week as a sense of caution seeps in ahead of the Fed policy verdict due later on Wednesday.
Markets continue to price in the first interest rate of this year to come in September, still expecting two 25 basis points (bps) rate cuts by year-end.
Dovish Fed expectations continue to lend support to bright metal alongside the Middle East geopolitical crisis, with markets awaiting fresh impetus for the next leg higher.
Monday’s Retail Sales and Industrial Production data from China failed to lift Gold price as the focus now remain on US Retail Sales and the Bank of Japan (BoJ) policy decision on Tuesday.
The BoJ policy announcements could fuel the USD/JPY pair-driven volatility in the Greenback, eventually impacting the USD-denominated Gold price.
Daily technical analysis
Gold price has stalled its recent uptrend, having failed to close the week above the critical resistance near $3,440.
However, the bullish potential remains in place as the 14-day RSI stays comfortably above the midline, currently near 62.50.
The retreat from two-month highs of could meet initial demand at $3,400, below which the sellers could challenge the previous strong resistance now support at $3,377, the 23.6% Fibo level of the April record rally.
The next downside cushion will be aligned at the 21-day SMA at $3,336 if the $3,350 psychological barrier gives way.
On the upside, acceptance above the aforesaid static resistance at $3,440 is critical to resuming the advance toward the record highs of $3,500.
The two-month highs of $3,453 could test bearish commitments buyers regain poise.
GOLD buyers take a breather before the next leg north
Gold price has briefly pulled back from fresh two-month highs reached just above $3,450 early Monday. All eyes remain on the deepening Israel and Iran conflict and trade headlines for fresh trading impetus.
The USD seems to have regained its lost footing in Asian trading on Monday, starting a new week on the front across its major currency rivals amid sagging investors’ confidence, leading to the minor pullback in Gold price.
Intensifying Iranian missiles attacks on Israel over the weekend, which continues well into early Monday, remains a drag on risk sentiment even as markets try to take into their stride and divert their attention to the upcoming central banks’ policy announcements this week.
Gold buyers also face exhaustion after rising as much as 4% in the previous week as a sense of caution seeps in ahead of the Fed policy verdict due later on Wednesday.
Markets continue to price in the first interest rate of this year to come in September, still expecting two 25 basis points (bps) rate cuts by year-end.
Dovish Fed expectations continue to lend support to bright metal alongside the Middle East geopolitical crisis, with markets awaiting fresh impetus for the next leg higher.
Monday’s Retail Sales and Industrial Production data from China failed to lift Gold price as the focus now remain on US Retail Sales and the Bank of Japan (BoJ) policy decision on Tuesday.
The BoJ policy announcements could fuel the USD/JPY pair-driven volatility in the Greenback, eventually impacting the USD-denominated Gold price.
Daily technical analysis
Gold price has stalled its recent uptrend, having failed to close the week above the critical resistance near $3,440.
However, the bullish potential remains in place as the 14-day RSI stays comfortably above the midline, currently near 62.50.
The retreat from two-month highs of could meet initial demand at $3,400, below which the sellers could challenge the previous strong resistance now support at $3,377, the 23.6% Fibo level of the April record rally.
The next downside cushion will be aligned at the 21-day SMA at $3,336 if the $3,350 psychological barrier gives way.
On the upside, acceptance above the aforesaid static resistance at $3,440 is critical to resuming the advance toward the record highs of $3,500.
The two-month highs of $3,453 could test bearish commitments buyers regain poise.
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