XAU/USD down but not out as key $5,140 support holds
Gold consolidates the advance to monthly top of $5,250 in Tuesday’s Asian trades.
The US Dollar finds demand as liquidity returns and risk sentiment recovers, despite US tariffs uncertainty.
Gold defends 61.8% Fibo resistance at $5,142 amid the pullback, daily RSI remains bullish.
Gold is testing bids under the $5,200 level early Tuesday, consolidating the uptick to one-month highs of $5,250. Buyers seem to have taken a breather after four back-to-back trading days of gains.
With Chinese and Japanese markets re-opening, optimism has returned alongside liquidity, allowing the USD to breath a sigh of relief.
Markets resorted to ‘sell America’ trades after the tariff confusion sparked by US President Donald Trump over the weekend, which sapped investors’ confidence.
The sell-off on Wall Street extended on Monday in the face of uncertainty over Trump’s tariffs, rising geopolitical risks and nervousness ahead of the AI pioneer Nvidia’s earnings report on Wednesday.
Gold snapped its four-day winning streak on modest USD rebound, testing the critical $5,142 support on pullback from monthly highs.
Markets continue to pay close attention to the tariff headlines, especially after the Wall Street Journal reported early Tuesday that Trump’s administration is mulling new national security tariffs on a half-dozen industries after a Supreme Court decision last Friday that nixed many of his second-term levies,
Additionally, geopolitical risks also remain in play as tensions keep simmering between the US and Iran.
Also, throw in the persistent expectations of atleast two US Fed interest rate cuts this year, and these factors will likely keep any downside cushioned in the traditional store of value, Gold.
Furthermore, Gold remains supported due to robust investment demand for Gold from India, despite record highs prices, per Money Metals Exchange.
Daily technical analysis
The 21-day Simple Moving Average (SMA) rises above the 50-, 100-, and 200-day SMAs, with all slopes advancing, underscoring a firm bullish bias. Price holds above these trend markers, with the 21-day SMA at $5,029.61 offering nearby dynamic support. The 14-day RSI prints at 59.50, just above the midline, reinforcing steady upside momentum.
Measured from the $5,597.89 high to the $4,401.99 low, price steadies between the 61.8% retracement at $5,141.05 and the 78.6% retracement at $5,341.96, with the latter capping gains. A daily close above the 78.6% retracement could open the path toward the prior high, while rejection there would risk a pullback toward the 50-day SMA at $4,742.30. As long as price respects the short-term averages, the near-term tone favors an extension within the retracement band before a directional break develops.
XAU/USD down but not out as key $5,140 support holds
Gold is testing bids under the $5,200 level early Tuesday, consolidating the uptick to one-month highs of $5,250. Buyers seem to have taken a breather after four back-to-back trading days of gains.
With Chinese and Japanese markets re-opening, optimism has returned alongside liquidity, allowing the USD to breath a sigh of relief.
Markets resorted to ‘sell America’ trades after the tariff confusion sparked by US President Donald Trump over the weekend, which sapped investors’ confidence.
The sell-off on Wall Street extended on Monday in the face of uncertainty over Trump’s tariffs, rising geopolitical risks and nervousness ahead of the AI pioneer Nvidia’s earnings report on Wednesday.
Gold snapped its four-day winning streak on modest USD rebound, testing the critical $5,142 support on pullback from monthly highs.
Markets continue to pay close attention to the tariff headlines, especially after the Wall Street Journal reported early Tuesday that Trump’s administration is mulling new national security tariffs on a half-dozen industries after a Supreme Court decision last Friday that nixed many of his second-term levies,
Additionally, geopolitical risks also remain in play as tensions keep simmering between the US and Iran.
Also, throw in the persistent expectations of atleast two US Fed interest rate cuts this year, and these factors will likely keep any downside cushioned in the traditional store of value, Gold.
Furthermore, Gold remains supported due to robust investment demand for Gold from India, despite record highs prices, per Money Metals Exchange.
Daily technical analysis
The 21-day Simple Moving Average (SMA) rises above the 50-, 100-, and 200-day SMAs, with all slopes advancing, underscoring a firm bullish bias. Price holds above these trend markers, with the 21-day SMA at $5,029.61 offering nearby dynamic support. The 14-day RSI prints at 59.50, just above the midline, reinforcing steady upside momentum.
Measured from the $5,597.89 high to the $4,401.99 low, price steadies between the 61.8% retracement at $5,141.05 and the 78.6% retracement at $5,341.96, with the latter capping gains. A daily close above the 78.6% retracement could open the path toward the prior high, while rejection there would risk a pullback toward the 50-day SMA at $4,742.30. As long as price respects the short-term averages, the near-term tone favors an extension within the retracement band before a directional break develops.
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