• MTS Gold Evening News 20210421

    21 Apr 2021 | Gold News



Gold gains as softer U.S. dollar, yields lift appeal

 

·         Gold prices rose on Wednesday, hovering near a seven-week high hit earlier this week, as a soggy dollar and a retreat in U.S. Treasury yields lifted demand for the safe-haven metal.

 

·         Spot gold was up 0.2% at $1,779.85 per ounce by 0205 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.

 

·         U.S. gold futures edged 0.2% higher to $1,781.60 per ounce.

 

·         “The U.S. dollar had edged lower this morning, supporting prices, with gold’s upward momentum from overnight continuing in Asia,” OANDA senior market analyst Jeffrey Halley said.

 

·         “Providing that U.S. 10-year yields remain softer, gold appears to be gathering strength for a test of the 100-day moving average at $1,802 an ounce in the days ahead.”

 

·         “In the big picture, gold prices are moving higher from lows established below $1,700 as the dollar remains weak and U.S. yields declined in the face of a new driver - geopolitics,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

 

·         “With a delay due to the accelerating spread of the coronavirus, gold traders would expect the Fed and other central bankers to remain dovish.”

 

 

·         Gold Price Forecast: XAU/USD likely to face stiff resistance near $1795-$1800, focus on yields

 


As observed on the four-hourly chart, gold remains on track to test the rising wedge hurdle at $1797 en-route $1800.
The price has managed to hold above the 21-simple moving average (SMA) at $1775, with the bullish Relative Strength Index (RSI) pointing towards extra gains.

Further up, the horizontal 100-day SMA at $1804 could be probed.

Alternatively, a four-hourly candlestick close below the 21-SMA will recall the sellers.

The confluence of the wedge support and 50-SMA at $1757 could emerge as strong support.

 

·         Spot gold targets $1,803-$1,818 range

A double-bottom forming around $1,677 indicates a further rise towards $1,852.

Spot gold may break a resistance at $1,785 per ounce and rise towards the range of $1,803-$1,818.

The correction triggered by this resistance has been almost reversed.

The reversal signals a continuation of the wave c from $1,722.94.

This wave is expected to travel to $1,803. Once the metal rises to this level, it is likely to extend its gains to $1,818. Support is at $1,763, a break below which could cause a fall limited to $1,753.

A double-bottom forming around $1,677 indicates a further rise towards $1,852.

On the daily chart, gold climbed above a resistance at $1,776 again. It is poised to test the next resistance at $1,799. A falling channel suggests a higher target around $1,828.

Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

 

·         Among other precious metals, silver was up 0.9% at $26.09 per ounce. Palladium gained 0.9% to $2,786.94, while platinum rose 1% to $1,199.03.

 

Reference: Reuters, FXStreet, Brecoder


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