Gold Price consolidates the rebound, not out of the woods yet.Markets remain risk-averse amid Beijing lockdown fears, Fed rate hikes.
US dollar index closes in on 102.00, holds near two-year highs.
Nothing much has changed fundamentally for Gold Price over the past 24 hours, although bulls are seeing some temporary reprieve. The bearish potential remains intact for XAUUSD, as the US dollar holds near two-year highs vs. its main rivals. Markets remain cautious and prefer to seek refuge in the US currency amid rising worries over the Fed’s aggressive tightening stance and Beijing’s covid lockdown, which may temper the global economic recovery. Traders now await the US economic releases for fresh dollar valuations, eventually impacting Gold Price.
Gold Price: Key levels to watch
The Technical Confluences Detector shows that Gold Price is stuck in a narrow range despite the rebound, as the pivot point one-week S1 at $1,906 limits the immediate upside.
If that level is scaled, then bulls need to yield a decisive break above $1,909, the confluence of the Fibonacci 38.2% one-day and the previous high four-hour.
The next stop for XAUUSD bulls is envisioned at the SMA10 four-hour at $1,911. Further up, the convergence of the Fibonacci 61.8% one-day and SMA200 15-minutes at $1,918 will be eyed.
On the downside, $1,900 acts as powerful support, where the Bollinger Band one-day Lower lies.Should bears take out that downside cap, then a retest of the daily lows at $1,896 will be inevitable.
The previous day’s low of $1,892 will be next on the sellers’ radars. The line in the sand for Gold buyers is the previous month’s low at $1,890.
EUR/USD stays on the back foot below 1.0700.EUR/USD trades deep in negative territory below 1.0700 on Tuesday as the dollar continues to capitalize on safe-haven flows. Wall Street’s main indexes are down between 0.9% and 1.5% after the opening bell, reflecting the risk-averse atmosphere. Investors await New Home Sales and CB Consumer Confidence data from the US.
EUR/USD News
GBP/USD struggles to recover above 1.2700.GBP/USD has been struggling to stage a rebound after having dropped to its weakest level since July 2020 near 1.2670 earlier in the day. The US Dollar Index is closing in on 102.00, reflecting the broad-based dollar strength in the early American session.
GBP/USD News
Gold holds above $1900 but remains at risk of bearish breakout.Gold Prices have stabilised on Tuesday above $1900, aided by further downside in US (and global) yields. But XAU/USD remains at risk of breaking below key $1980 support with the DXY eyeing a push above 102.00.
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