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XAU/USD: consolidation at 1800.00

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  • XAU/USD: consolidation at 1800.00

    Current trend

    Gold prices are holding near 1800.00 during the Asian session, consolidating after moderate gains the day before.

    On Monday, the asset managed to add insignificantly in value against the background of a decrease in the yield of US Treasury bonds. In addition, many investors continue to be skeptical about the prospect of cutting the current quantitative easing (QE) program from the US Fed until the end of 2021, believing that the regulator will take a wait-and-see attitude against the backdrop of ambiguous macroeconomic statistics. The persisting epidemiological risks force market participants to look for safer assets for investment. As vaccination campaigns expand, the situation is gradually improving, but it remains highly volatile.

    Support and resistance

    In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD is declining keeping a weak sell signal (located below the signal line). In addition, the indicator is trying to consolidate below the zero level. Stochastic, having approached its lows, is trying to reverse upwards, indicating the risks of oversold gold in the ultra-short term.

    To open new trading positions, it is necessary to wait for the signals from technical indicators to be clarified.

    Resistance levels: 1800.00, 1809.36, 1822.99, 1833.90.

    Support levels: 1790.00, 1782.19, 1772.70, 1760.74.