Analysis Of The XAU/USD Pair: Gold Approaching Lower Levels

By RoboForex Analytical Department

Investors are anticipating new comments from the head of the US Federal Reserve, Jerome Powell, regarding further steps in monetary policy. The central bank's key rate is at its highest level since 2008, and the yield on 10-year US Treasury bonds is closely approaching the 5% mark. Against this backdrop, demand for the US dollar is breaking records.

Technical Analysis Of The XAU/USD Currency Pair

On the D1 timeframe in the XAU/USD pair, resistance is at 1929.14, while the support level is still not formed. An important historical level – 1857.88 has been breached. Quotes dipped below the 1840 mark, and support is likely to form around this level.

On the H1 timeframe, a weak ascending trend is observed. Speculative purchases can be considered within the temporary correction from 1841.50 with a target at 1857. Given the duration of the falling trend, sales along the trend are unlikely. Short positions may be considered after a rebound from 1855 after the correction.

Disclaimer

Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

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