Gold Price News and Forecast: XAU/USD corrective downside on the cards

Gold Price News and Forecast: XAU/USD corrective downside on the cards

Gold (XAU/USD) extends a three-day winning streak on Tuesday, looking to regain the $1850 level. The road to recovery from two-month troughs picks up pace amid an imminent approval of the US $1.9 trillion stimulus package by Congress. Growing optimism on the stimulus is pushing the US inflation expectations, underpinning the inflation-hedge gold.

However, rising longer-term inflation expectations also drive the Treasury yields higher, posing a risk to the rally in gold. Let’s take a look at how is gold positioned technically. Read more…

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Gold Futures: Corrective downside on the cards

CME Group’s preliminary figures for gold futures markets noted open interest shrunk for the second consecutive session on Monday, this time by almost 2K contracts. In the same line, volume went down for the second straight session, now by around 26.1K contracts.

Gold could re-test the 200-day SMA near $1,850

Gold prices edges higher at the beginning of the week, extending the rebound from Friday’s 2021 lows near $1,780. The move, however, was on the back of shrinking open interest and volume and hints at the idea that a correction lower could be in the offing. That said, the precious metal is expected to falter around the key 200-day SMA just above $1,850 per ounce troy. Read more…

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Gold Price Analysis: XAU/USD remains well bid near one-week tops, just below $1850 level

Gold maintained its strong bid tone through the mid-European session and was last seen trading around the $1844-45 region, just below one-week tops set earlier this Tuesday.

The precious metal built on last week’s recovery move from the $1785 area, or near two-month lows and continued gaining positive traction for the third consecutive session. The strong move up was sponsored by the emergence of some heavy selling around the US dollar, which, in turn, underpinned demand for the dollar-denominated commodity.

Credit: FX Street

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