Gold Price Forecast: XAU/USD fails to recapture $1740, with support at $1730

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  • Gold continues to return for Monday’s bounce.
  • Price hit a daily low of $1,728 and then jumped to $1,737.
  • Outlook continues to show some weakness, which could change from holding above $1,740.

After a jump from the low of the day at $1728 to $1737, gold turned negative again and trades around $1733still showing some weakness, weighs down on the dollar and on Treasury bond yields and on the rise in stock markets.

The government bond yields they are pulling back on Tuesday (at a modest pace) but gold fails to gain favor though it does help keep it off Monday’s low. The US 2-year bond is at 3.40%, and the 10-year at 3.06%.

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Another factor that is providing support is the rise in equity markets and the weakness of the dollar. The US Dollar Index (DXY) is down 0.25% and is trading in the 108.50 area.

The economic calendar shows for Tuesday, at 12:00 GMT, the inflation data for Germany preliminary for August, a reading that can have an impact on the market. Next will be the US Home Price report for June, the Job Ads report for July, and the Conference Board Consumer Confidence Index for August (final). New York Fed President John Williams will participate in a question and answer session on the economic outlook and the fight against inflation, organized by the WSJ.

More pressure below $1730

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Should it return below $1,730 and stay there, further downside pressure would be expected., which would expose the weekly low in the area of ​​$1720. The next support after that is seen at $1705.

In the opposite direction, the yellow metal needs to recover levels above $1740 to alleviate the negative bias. Resistances above are seen at $1745, and $1754.

Technical levels

XAU/USD

Panorama
Last Price Today 1734.89
Today’s Daily Change -2.24
Today’s Daily Change % -0.13
Today’s Daily Opening 1737.13
Trends
20 Daily SMA 1767.65
50 Daily SMA 1763.78
100 Daily SMA 1818.06
200 Daily SMA 1836.84
levels
Previous Daily High 1745.58
Previous Daily Minimum 1720.41
Previous Maximum Weekly 1765.51
Previous Weekly Minimum 1727.87
Monthly Prior Maximum 1814.37
Previous Monthly Minimum 1680.91
Daily Fibonacci 38.2% 1730.02
Daily Fibonacci 61.8% 1735.97
Daily Pivot Point S1 1723.17
Daily Pivot Point S2 1709.2
Daily Pivot Point S3 1698
Daily Pivot Point R1 1748.34
Daily Pivot Point R2 1759.54
Daily Pivot Point R3 1773.51

Source: Fx Street

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