9 Mar 2015
Gold on recovery mode – FXStreet
FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Dhwani Mehta, XAU/USD is seen recovering from its previous lows, and will likely extend the rebound, anticipating a break above 1174.33 to lead the pair higher towards 1180.
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave a major trend line break down on daily charts on Friday and broke below the crucial Jan 2015 lows, reaching a fresh three month lows of 1163.80 levels.”
“Gold prices plummeted after the solid US jobs data painted a better outlook for the US economy, bolstering the case for an earlier Fed rate-hike.”
“Currently, the pair has rebounded slightly from three month lows and trades at 1170 levels, extending its recovery mode.”
“The daily RSI standing at 28.53 levels in an extremely oversold zone, has ticked higher, pointing out to a minor recovery on a short covering rally post the recent slump.”
“The pair may edge higher and face stiff resistance around hourly 20-SMA located at 1174.33 levels. A break above 20-DMA, the pair may once again inch towards 1180 levels.”
“However, with the USD bulls buoyant on increased bets of US rate lift-off, gains in XAU are likely to be restricted.”
“To the downside, the pair may retest 1163.80 (March 6 Low), below a break of daily lows of 1167 levels.”
“Overall, the pair is likely to trade cautious, gradually extending its recovery mode above 1163 levels.”
Key Quotes
“Gold prices in terms of US dollar (XAU/USD) gave a major trend line break down on daily charts on Friday and broke below the crucial Jan 2015 lows, reaching a fresh three month lows of 1163.80 levels.”
“Gold prices plummeted after the solid US jobs data painted a better outlook for the US economy, bolstering the case for an earlier Fed rate-hike.”
“Currently, the pair has rebounded slightly from three month lows and trades at 1170 levels, extending its recovery mode.”
“The daily RSI standing at 28.53 levels in an extremely oversold zone, has ticked higher, pointing out to a minor recovery on a short covering rally post the recent slump.”
“The pair may edge higher and face stiff resistance around hourly 20-SMA located at 1174.33 levels. A break above 20-DMA, the pair may once again inch towards 1180 levels.”
“However, with the USD bulls buoyant on increased bets of US rate lift-off, gains in XAU are likely to be restricted.”
“To the downside, the pair may retest 1163.80 (March 6 Low), below a break of daily lows of 1167 levels.”
“Overall, the pair is likely to trade cautious, gradually extending its recovery mode above 1163 levels.”