Gold extended its gains to exceed $1,700. Nevertheless, TD Securities strategists expect XAU/USD to reverse recent rally towards $1,580.
Firm resistance is found at $1,763-73
“The yellow metal is trading at the 50 day moving average, which in our view should serve as the first resistance level. If there is enough momentum to materially establish above that level, the 100-day moving average at $1,763-$73 should be an even firmer resistance zone.”
“We see gold losing steam and drifting back towards our $1,580 target in the coming months, as the Fed continues its aggressive plan to move the Fed Funds rate above the 4.5% level and keep rates in a tightening mode until inflation is ironed out. Or, at least, until there is a high probability that inflation approaches the target. This will go well into 2023 or beyond.”
Source: Fx Street
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