Gold price attempts a dead cat bounce towards $1,800 amid retreating yields. But in the view of FXStreet’s Dhwani Mehta, Thanksgiving Day is unlikely to offer respite to XAU/USD bulls amid a bear flag.
“Gold is attempting a tepid bounce amid a brief pullback in the greenback. The US currency lacks the follow-through upside bias, as investors switch onto the sidelines amid a Thanksgiving Day holiday in the US. Despite the rebound, the risks remain skewed to the downside as the Fed’s hawkishness will continue to underpin the sentiment around the dollar and yields.”
“Growing covid concerns in the European countries could keep the investors unnerved and scurrying for safety in the dollar at gold’s expense. Further, a sustained technical break below the $1,800 threshold continues to keep the sellers motivated.”
“XAU/USD confirmed a bear flag formation on the four-hour chart Wednesday after closing the candlestick below the rising trendline support, then at $1,790. With the bearish technical setup in play, all eyes remain on the pattern target measured at $1,707. Ahead of that, the November 4 low of $1,769 could come to the rescue of gold bulls. The $1,750 psychological level could be the next stop for the bears.”
“The rising trendline support now resistance at $1,794, offers an immediate upside barrier. Acceptance above the latter will enhance the recovery momentum towards the $1,800 level. Further up, powerful resistance around $1,807 will be a nut to crack for gold bulls. At that point, the 200 and 21-SMAs coincide.”
See – Gold Price Forecast: Rising US real yields to increase the downside pressure on XAU/USD – Credit Suisse
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.