Gold  is printing fresh hourly highs in Asia as the US dollar and Treasury yields slide to new lows for the day.  Spot gold, XAU, rose 0.35% to $1,790.47 per ounce by 030 GMT while the Benchmark 10-year and 30-year US Treasury yields continued to pull back from their one-week highs hit on Tuesday. The market mood continues to improve mid-week, exerting downside pressure on the greenback while shoring up gold price to fresh weekly highs above $1,790. Despite the Omicron-related optimism, markets remain anxious ahead of the US inflation reading, reflective of the weakness in the Treasury yields across the curve.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The Golden Cross remains in play, as gold bulls test the powerful resistance – the confluence of the 100 and 200-Daily Moving Averages (DMA) at $1,792 amid the renewed upside. The 14-day Relative Strength Index (RSI) is inching higher to probe the 50.00 level, suggesting that the tide could be turning in favor of bulls.

However, daily closing above the key confluence is needed to unleash the additional recovery. A sustained move above the latter will put the upward-pointing 50-DMA at $1,795 to test. The next crucial barrier awaits at the $1,800 level. Should the recovery sustain that a retest of the November 30 high at $1,809 would be inevitable.

On the flip side, immediate support is seen at the previous day’s low of $1,772. Friday’s low at $1,766 could then come to the rescue of gold bulls. The crucial support is seen at the horizontal trendline at $1,760 will be the line in the sand for gold optimists.

Gold Supported By $1770, Eyes On $1800

Dec 08 2021

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