Gold Price Analysis: Bullish sentiment caps gains for XAU/USD

A goodish USD rebound and an uptick in the US bond yields prompted some selling around gold on Tuesday. The yellow metal was last seen trading around the $1810 region as bulls are trying to seize control but optimism is capping gains for XAU/USD, FXStreet’s Haresh Menghani briefs.

See – Gold Price Analysis: XAU/USD sees strong support around $1765 – Standard Chartered

Key quotes

“The key focus will remain on Powell's second day of testimony to the Senate Banking Committee. This will play a key role in influencing the USD and produce some meaningful trading opportunities around the XAU/USD.”

“Technical indicators on the daily chart are yet to confirm a bullish bias and warrant caution before positioning aggressively for any further positive move. Hence, any subsequent strength is likely to confront resistance near the $1823-25 horizontal zone. This is followed by the 38.2% Fibo. level, around the $1835 region, which if cleared will set the stage for additional gains.”

“Some follow-through selling below the overnight swing lows, around the $1795 region, will negate the constructive outlook and turn the XAU/USD vulnerable. The commodity might then accelerate the slide towards the $1775-72 intermediate support en-route the $1760 region, or seven-month lows touched last Friday.”