2. Points To Be Covered Today :
• XAU/USD Accelerates Above $1770, Turns Positive For The Week.
• Forex Today: Dollar Hurt, China To Set The Tone.
• Gold Price Is Easing Back Toward.
• Gold Price: Key Levels To Watch
• Gold Price Has Regained The Bullish Momentum.
• Gold Price Chart – Technical Outlook.
3. XAU/USD Accelerates Above $1770, Turns Positive
For The Week
• US dollar tumbles across the board and boosts XAU/USD.
• Gold up a hundred dollars from Monday’s low.
• Gold prices are up by more than 1% on Friday, boosted by lower US yields
and a weaker greenback. XAU/USD trades at $1774, the highest level in a
week.
• University of Michigan’s Consumer Confidence report showed a sharp,
unexpected decline to 70.2 in the main index, the lowest level since 2011.
4. DXY Is Falling
• The numbers added fuel to the decline of the greenback across the board.
• The DXY is falling 0.50%, having the worst day in weeks.
• US yields tumbled after the latest economic numbers.
• The 10-year yield dropped to 1.30%, the lowest since Monday.
• The combination of a weaker dollar and the rally in Treasuries pressured gold
prices further to the upside.
5. XAU/USD
• XAU/USD erased weekly losses and is in positive territory after a reversal of a
$100 from the Monday flash crash low.
• The weekly chart now offers a positive perspective for gold after the rebound
from the key support at $1675.
• A close above $1760 would keep the door open to an extension of the current
rally.
• The next strong barrier is seen at $1795.
6. Forex Today: Dollar Hurt, China To Set The Tone
• The greenback plummeted following the release of US Michigan Consumer
Sentiment, down to an almost 10-year low in August.
• The sentiment collapsed as the spread of the Delta variant in the country spurred
concerns about the economic comeback.
• US Treasury yields were sharply down, although Wall Street managed to post
modest gains, with the DJIA and the S&P reaching record highs.
• The EUR/USD pair approached the 1.1800 figure, while GBP/USD stalled its
recovery well below the 1.3900 level.
• European currencies suffer from tepid local data indicating a slow economic
comeback in the Old Continent.
7. Forex Today: Dollar Hurt, China To Set The Tone - I
• The USD/JPY pair turned bearish, breaking below the 110.00 level. It stands
at around 109.50.
• On the other hand, commodity-lined currencies posted modest recoveries.
• The Canadian dollar was among the worst performers, as crude oil prices
edged lower, with WTI settling at $67.75 a barrel.
• AUD/USD settled around 0.7370, despite soaring gold prices.
• The bright metal accelerated its advance by the end of the week, settling at
$1,779.50 a troy ounce.
9. XAU/USD Stays Poised To Extend Recovery
• Following Wednesday's decisive rebound, the XAU/USD pair fluctuated
in a tight range before closing flat a little above $1,750 on Thursday.
• Although gold managed to continue edge higher during the European
trading hours on Friday, it seems to be struggling to gather bullish
momentum.
• Nevertheless, the pair clings to modest daily gains and was last seen
rising 0.38% at $1,759.50.
10. Gold Price Is Easing Back Toward
• Later in the session, the University of Michigan's preliminary August
Consumer Sentiment Index data, which is expected to remain steady at 81.2,
from the US will be looked upon for fresh impetus but the trading action is
likely to remain subdued ahead of the weekend.
• Gold price is easing back towards $1750, having refreshed four-day highs at
$1760 in the last hours.
• Despite the minor pullback, the bullish potential in gold price remains intact
amid the ongoing weakness in the Treasury yields, which remains a drag on
the US dollar.
11. Softer US CPI And Upbeat PPI
• The returns on the market sag, as investors turn cautious amid the continued
spread of the Delta covid variant cases and uncertainty over the Fed’s next
monetary policy move.
• Softer US CPI and upbeat PPI data have left the markets in limbo, given the
recent expectations about the Fed’s tapering.
• Looking ahead, the US Preliminary UoM Consumer Sentiment could provide
fresh hints on the economy, impacting the USD valuations, in turn, gold.
12. Gold Price: Key Levels To Watch
• The Technical Confluences Detector shows that gold tested the powerful
resistance at $1760, which is the convergence of the previous week’s low and
Bollinger Band one-hour Upper.
• Acceptance above the latter is needed to take on the immediate resistance at
$1762, the pivot point one-day R1.
• The next significant upside target is envisioned at $1767, the previous
month’s low, around where the pivot point one-day R2 coincides.
13. Gold Price: Key Levels To Watch - I
• Alternatively, bears need to find a strong foothold below the fierce support at
$1754, the confluence of the Fibonacci 23.6% one-day, SMA5 four-hour and
the previous low four-hour.
• Sellers will then aim for the $1750 support area, where the Fibonacci 38.2%
one-day meets the SMA50 one-hour.
• Further south, the intersection of the Fibonacci 61.8% one-day and Bollinger
Band one-hour Lower at $1748 guards the downside.
• A dense cluster of support levels around $1744 could then test the bearish
commitments.
15. XAU/USD Has Room To Rise Towards $1765-$1770
• Gold price resumes the recovery momentum as DXY drops with yields.
• Gold’s four-hour chart shows a likely advance towards $1766, $1771 levels.
• US Prelim Michigan Consumer Sentiment holds the key this Friday.
• Gold price extended the previous recovery momentum into the first half of
Thursday’s trading and went to hit fresh three-day highs at $1758.
16. Consumer Price Index (CPI)
• The US dollar remained on the defensive amid fading hawkish Fed expectations, in
light of softer-than-expected US Consumer Price Index (CPI) data.
• However, the tide turned in favor of gold bears after the US Producer Price Index
(PPI) came in higher than expected and revived the Fed’s tapering bets, lifting the
dollar alongside the Treasury yields.
• A tepid 30-year auction also put a fresh bid under the 10-year US yields, capping
gold’s recovery.
• Gold price closed the day at $1753, marginally higher on the day.
• The narrative over a potential Fed’s monetary policy normalization continued to
drive the sentiment around the dollar and gold price.
17. Gold Price Has Regained The Bullish Momentum
• On the final trading day of the week, the greenback is tracking the weakness in the
US rates, as the ongoing spread of the Delta covid variant and Chinese regulatory
curbs dent the appetite for higher-yielding assets.
• Therefore, gold price has regained the bullish momentum, although the bulls remain
cautious ahead of the US Preliminary Michigan Consumer Sentiment data, which is
seen steady at 81.2 in August.
• A downside surprise on the US sentiment gauge could weigh on the Fed’s tapering
expectations, bossing well for gold price.
• Meanwhile, a broader market consensus that the Fed will unveil its tapering plan
next month also keeps gold price in a familiar range above $1750 ahead of the key
event risk this Friday.
19. Gold Price Chart - Technical Outlook - I
• Gold’s four-hour technical chart shows that the Relative Strength Index (RSI) is
edging higher, having recaptured the 50.00 level.
• Gold price, therefore, has room to rise towards the horizontal trendline resistance at
$1766, above which the 50-Simple Moving Average (SMA) at $1771.
• A weekly closing above the latter will call for a retest of the $1800 mark, negating
the near-term bearish bias.
• On the flip side, the immediate downside is cushioned by the $1750 psychological
level. A firm break below the latter could bring the 21-SMA at $1742 back in the
sellers’ sight.
• Deeper losses towards the August 11 low of $1724 could be in the offing should the
downside momentum accelerate.
