XAU/USD recaptures 21-day SMA, but sellers refuse to give up yet
Gold stalls its recent recovery just above $4,200 early Monday, as the Strait of Hormuz risks lurkThe US Dollar rebounds on renewed haven demand and the USD/JPY advance.
Gold finds acceptance above the 21-day SMA, but the daily RSI remains bearish.
Gold is easing from ten-day highs just above $4,200 early Monday, as risk sentiment turns sour and revives safe-haven demand for the US Dollar (USD).
Gold is easing from ten-day highs just above $4,200 early Monday, as risk sentiment turns sour and revives safe-haven demand for the US Dollar (USD).
Gold appears to snap its recovery momentum from seven-month lows of $3,942, reached a week ago, as fresh concerns around the Strait of Hormuz and the peace talks between the United States (US) and Iran sap investors’ confidence, lifting the Greenback from its lowest level in two weeks across its major competitors.
Iran’s ambassador to China, Abdolreza Rahmani Fazli, confirmed that Tehran plans to introduce new service fees for ships passing through the Strait of Hormuz.’
Meanwhile, the Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran will not enter into talks with the US on a final agreement until every clause of the MoU is implemented, including an end to hostilities in Lebanon and the release of frozen Iranian funds.
Additionally, the fresh uptick in the USD/JPY pair, due to sustained weakness in the Japanese Yen (JPY), helps the buck to attempt a recovery, even as intervention fears loom.
Looking ahead, attention will remain on the Middle East headlines for the next move in the USD and Gold, as markets scale back bets for a September interest rate hike by the US Federal Reserve, following a weak June Nonfarm Payrolls (NFP) report released last Thursday.
The US NFP increased by 57,000 in June, well below expectations for a 110,000 rise. The Labor Force Participation Rate dropped to 61.5%, a more than five-year low.
Gold traders will also remain alert to the return of liquidity as US traders resume after a long weekend break. The US celebrated Independence Day on Friday, which likely extended into the weekend.
In the daily chart, XAU/USD trades at $4,164.20. The metal holds a bearish near-term bias as it remains below the 50-day simple moving average (SMA) at roughly $4,392, the 200-day SMA near $4,488 and the 100-day SMA around $4,628, leaving price capped by a dense band of overhead trend resistance. The 21-day SMA at about $4,157 now acts as immediate support just beneath spot, while the Relative Strength Index (14) hovering around 46 suggests subdued, slightly negative momentum rather than an oversold condition.
Further, the Death Cross remains in play after the 50-day SMA closed below the 200-day SMA on a weekly closing basis, keeping sellers hopeful.
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XAU/USD recaptures 21-day SMA, but sellers refuse to give up yet
Gold is easing from ten-day highs just above $4,200 early Monday, as risk sentiment turns sour and revives safe-haven demand for the US Dollar (USD).
Gold appears to snap its recovery momentum from seven-month lows of $3,942, reached a week ago, as fresh concerns around the Strait of Hormuz and the peace talks between the United States (US) and Iran sap investors’ confidence, lifting the Greenback from its lowest level in two weeks across its major competitors.
Iran’s ambassador to China, Abdolreza Rahmani Fazli, confirmed that Tehran plans to introduce new service fees for ships passing through the Strait of Hormuz.’
Meanwhile, the Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran will not enter into talks with the US on a final agreement until every clause of the MoU is implemented, including an end to hostilities in Lebanon and the release of frozen Iranian funds.
Additionally, the fresh uptick in the USD/JPY pair, due to sustained weakness in the Japanese Yen (JPY), helps the buck to attempt a recovery, even as intervention fears loom.
Looking ahead, attention will remain on the Middle East headlines for the next move in the USD and Gold, as markets scale back bets for a September interest rate hike by the US Federal Reserve, following a weak June Nonfarm Payrolls (NFP) report released last Thursday.
The US NFP increased by 57,000 in June, well below expectations for a 110,000 rise. The Labor Force Participation Rate dropped to 61.5%, a more than five-year low.
Gold traders will also remain alert to the return of liquidity as US traders resume after a long weekend break. The US celebrated Independence Day on Friday, which likely extended into the weekend.
In the daily chart, XAU/USD trades at $4,164.20. The metal holds a bearish near-term bias as it remains below the 50-day simple moving average (SMA) at roughly $4,392, the 200-day SMA near $4,488 and the 100-day SMA around $4,628, leaving price capped by a dense band of overhead trend resistance. The 21-day SMA at about $4,157 now acts as immediate support just beneath spot, while the Relative Strength Index (14) hovering around 46 suggests subdued, slightly negative momentum rather than an oversold condition.
Further, the Death Cross remains in play after the 50-day SMA closed below the 200-day SMA on a weekly closing basis, keeping sellers hopeful.
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