Gold Struggles To Recover On Growth Concerns, Firmer USD

1. Gold Struggles To Recover On
Growth Concerns, Firmer USD

2. Points To Be Covered Today:
• Look Consolidative/Bearish Near Term
• Gold Stays Capped Near $1,800
• Some Caution For Bearish Traders
• XAU/USD Rally Higher To Struggle At The $1806/12
Zone
• XAU/USD Struggles To Recover On Growth
Concerns, Firmer USD
• Gold Price Chart: Daily

3. Look Consolidative/Bearish Near Term
• Open interest in gold futures markets rose for
the fifth session in a row on Wednesday.
• This time by around 2.3K contracts
considering preliminary readings from CME
Group.
• On the other hand, volume remained choppy
and shrank by around 16.6K contracts.

4. Gold Stays Capped Near $1,800
• Wednesday’s inconclusive session
in gold prices was amidst rising open interest
and now opens the door to some
consolidative phase in the near term.
• However, further downside cannot be ruled
out following another failure to surpass the
$1,800 mark per ounce troy in past sessions.

5. Gold Stays Capped Near $1,800 -I

6. COVID-19 Jitters To Limit The
Downside For XAU/USD
• A strong pickup in the USD demand
dragged gold back closer to weekly lows
on Thursday.
• However, downside potential for
XAU/USD seems limited amid COVID-19
woes, according to FXStreet’s Haresh
Menghani.

7. Some Caution For Bearish Traders
• “Persistent COVID-19 jitters held investors from
placing any aggressive bearish bets, warranting
some caution before confirming that the
XAU/USD has topped out in the near term.”
• “Traders now look forward to the US economic
docket, featuring the release of the Philly Fed
Manufacturing Index and the usual Initial Weekly
Jobless Claims.
• The data might influence the USD and provide
some impetus to the commodity.”

8. Some Caution For Bearish Traders - I
• “Any subsequent fall below the $1,770 level
(23.6% Fibo. level) might attract some buying
near the 200-hour SMA, currently around the
$1,760 area.
• This is closely followed by the 38.2% Fibo.
• level, near the $1,754 region, which should
now act as a key pivotal point for short-term
traders.”

9. Some Caution For Bearish Traders - II
• “The $1,795 zone now seems to have emerged as
immediate strong resistance.
• Some follow-through buying beyond the $1,800
mark will be seen as a fresh trigger for bullish
traders and set the stage for additional gains.
• The XAU/USD might then surpass an
intermediate hurdle near the $1,812-13 region,
or the very important 200-day SMA, and aim to
challenge the double-top resistance, around the
$1,832-34 zone.”

10. Break Below The $1670 June 2020
Low To Target $1584
• “Gold has seen a strong bounce off the March
lows at $1679/$1677, which is approaching
tougher resistance offered by the 55, 100 and
200-day ma at $1806/12 and the resistance
line at $1813.
• suspect that this will repel the advance at
least on the initial test and provoke some
further consolidation.”

11. Break Below The $1670 June 2020
Low To Target $1584 - I
• “Key resistance is the mid-July high at $1834,
a move above here is needed to retest the
$1856/57 4th June low and the $1878 2020-
2021 downtrend.”
• “Support at “1679/$1677 is reinforced by the
$1670 June 2020 low.
• “Below $1670 (not favoured) would target the
2018-2021 uptrend at $1584.”

12. XAU/USD Struggles To Recover On
Growth Concerns, Firmer USD
• Gold price is sold-off into hawkish Fed
minutes, signaling tapering this year.
• Dollar bulls flex their muscles, covid fears add
to their strength.
• Gold (XAU/USD) fades bounce off intraday
low, down 0.52% on a day around $1,778, as
European traders brace for Thursday’s bell.

13. The Market Sentiment
• The yellow metal prints the biggest daily
losses since the August 09 slump as
the market sentiment sours amid coronavirus
fears.
• Also favoring the gold sellers could be the Fed
tapering woes and chatters over growth
figures, raised by global banks and rating
agencies, as Delta covid strain firm-up the
grips.

14. The US Dollar Index
• Additionally weighing on the commodity
are the US dollar gains.
• That said, the US Dollar Index (DXY)
jumps to the nine-month high as the
market’s risk-off mood joins a technical
breakout.

15. Gold Traders & Virus Update
• Looking forward, gold traders need to keep
their eyes on the virus updates and GDP, as
well as tapering, related headlines for fresh
impulse.
• Also important are the US Jobless Claims for
the week ended on August 13, expected 363K
versus 375K and the Philadelphia Fed
Manufacturing Survey for August, forecast 23
versus 21.9 prior.

16. Gold Price Is Pressurizing Lows
• Gold price is pressurizing lows near $1780,
looking for a sustained break below the round
number to extend the downside towards the
$1750 support area.
• The bearish sentiment grips gold price, as the
US dollar holds the higher ground amid a
double booster shot.

17. Gold Price Is Pressurizing Lows - I
• The July Fed meeting minutes showed that
the officials discussed tapering plans before
the end of this year, which gave a shot in the
arm for the dollar optimists.
• Meanwhile, growing fears over the Delta covid
variant spread weighs on the market mood,
bolstering the safe-haven demand for the
greenback.

18. Gold Price Is Pressurizing Lows - II
• Looking ahead, amid a lack of relevant US
economic news, the covid updates and the
dynamics in the dollar will continue to have a
significant impact on gold price.
• Hawkish Fed expectations will likely keep gold
bulls on the defensive.
• However, the risk-off trading in the global
stocks combined with weaker Treasury could
likely offer some reprieve to gold bulls.

19. Gold Price Chart: Daily

20. Gold Struggles To Recover On
Growth Concerns, Firmer USD

21. Thanks for listening
Gold Struggles To Recover On
Growth Concerns, Firmer USD