Gold Price Outlook Turns to Fed Chair Jerome Powell as XAU/USD Breaks Resistance

Gold Price Outlook Turns to Fed Chair Jerome Powell as XAU/USD Breaks Resistance

Gold, XAU/USD, NFPs, Treasury Yields, Fedspeak, Technical Analysis – Talking Points:

Gold prices traded quietly as the new trading week began with the Asia-Pacific session. Treasury yields trimmed losses from Friday. The yellow metal closed at its highest since early September last week following fairly supportive fundamental developments. That would be the combined disappointment that hawks were looking for from the Reserve Bank of Australia, Bank of England and Federal Reserve.

The key takeaway between the three of them was their stance on inflation being transitory, cooling 2022 rate hike expectations. The 10-year Treasury yield closed at its lowest since late September. This is something that the anti-fiat XAU/USD likely took well advantage of. But, persistent strength in the US Dollar likely capped its upside potential.

Over the remaining 24 hours, gold prices will eye Fedspeak, including Chair Jerome Powell and Vice Chair Richard Clarida. This follows last Friday’s stellar non-farm payrolls report, which struggled to bring forward hawkish Fed monetary policy expectations in the wake of patient commentary around interest rates. Reiterating similar language may continue keeping yields at bay, supporting XAU/USD.

Check out the DailyFX Economic Calendar for more key events!

Gold Technical Analysis

On the 4-hour chart, gold prices broke above the 1813 – 1808 resistance zone, exposing the 1825 – 1834 zone above. The latter is made up of peaks from July. A bullish Golden Cross between the 20- and 50-period SMAs may form, opening the door to an upward technical bias. These lines may also come into play as key support in the event of a near-term decline.

According to IG Client Sentiment (IGCS), roughly 66% of retail traders are net-long gold. Downside exposure has increased by 10.30% and 48.34% over a daily and weekly basis respectively. We typically take a contrarian view to crowd sentiment. Since most traders are net-long, this suggests prices may fall. But, recent shifts in positioning are resulting in a bullish-contrarian trading bias.

— Written by Daniel Dubrovsky, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

This content was originally published here.

Rate:

0 out of 5 stars(0 ratings)

Subscribe to Our Newsletter

money for gold logo

Learn About Buying and Selling Gold for the Best Prices

Get the latest news and expert advice on Gold!

We don’t spam! Read our privacy policy for more info.

Leave a Reply

Related

Gold price takes another dip in Pakistan  - SAMAA

The gold price in Pakistan took a Rs1,000 dip on Saturday. A tola of gold can now be bought for Rs10,9200, according to…

Read more
Price of spot gold surges on inflation

Bars of gold are arranged for a…

Read more

Share Great Content for Our Resource Section

About

MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.

Have a question or comment? Email us at: contact@moneyforgold.com

Navigation
MoneyForGold.com
50% Complete

Learn Where to Sell Your Gold for the Best Prices

Free 3-Minute, Practical Stories Delivered to You Everyday!
Buy, Sell, Invest in Gold Today!