XAU/USD awaits PMI data inside bullish set-up near $1,800

Gold (XAU/USD) edges higher around $1,808, up 0.07% intraday, while extending the bounce off a two-week low during Friday’s Asian session. Improving market sentiment seems to help the gold buyers to retake controls inside a bullish chart pattern, falling wedge, of late.

Behind the moves could be the US policymakers concerning the US President Joe Biden’s infrastructure spending bill’s passage, despite being rejected for opening debate. On the same line was the relief to lawmakers offered by the US Congressional Budget Office (CBO) when it said, per Bloomberg, “US lawmakers likely have until October or November to raise or suspend the debt limit.” This will help the diplomats to have a bit more time than the July 31 deadline when the debt limit will need a change from the $22 trillion level set in 2019.

Also positive for the mood could be the latest covid updates from Australia suggesting a lower count in Victoria. Additionally, the US vaccine panel’s support for COVID-19 booster shots also favors the sentiment.

It’s worth mentioning that the ECB’s dovish tilt and the US dollar’s recently lackluster moves, coupled with off in Japan and a light calendar elsewhere, add to gold’s short-term upside.

Amid these plays, S&P 500 Futures print 0.23% intraday gains after Wall Street benchmarks closed positive for the third day in a row, grinding lower though.

Looking forward, market players will keep their eyes on the first readings of July’s activity numbers from the key Western players, namely the UK, the US and the European Union (EU). Although the readings won’t be a big surprise if marking a lower count, due to the virus resurgence, any strong positive beat will be welcomed by the gold buyers with zeal.

Read: US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Technical analysis

Gold prices stay on the way to $1,810 resistance confluence comprising 200-SMA and 50% Fibonacci retracement of June’s fall.

With the MACD line teasing bullish cross over the signal line, the upside momentum may gain traction should the commodity manages a clear break of the nearby key hurdle.

However, the resistance line of a two-week-old falling wedge bullish chart pattern and 61.8% Fibonacci retracement (Fibo.), respectively around $1,819 and $1,825, not to forget the monthly peak of $1,834, will be crucial to watch going further north.

On the contrary, pullback moves may re-test the $1,800 round figure before dropping back to the 38.2% Fibo. level surrounding $1,796.

During the quote’s weakness past $1,796, the lower line of the stated wedge near $1,792 will challenge the gold sellers.

Gold: Four-hour chart

Trend: Further recovery expected


Website Worth Calculatorsiteprice.org domain valuewebsite worth domain value

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *