Gold Prices Rebound as Dollar Rally Takes a Pause
2023.05.15 09:56
prices started the week on a positive note following three consecutive days of losses as the rally takes a breather. In the absence of high-tier economic data, a technical correction alongside receding market jitters have paused the gold decline.
At the time of writing, spot gold is trading at $2,015 an ounce, 0.30% above its opening price.
Last week, renewed worries surrounding the United States debt ceiling negotiations and the banking sector triggered a solid rally in the US dollar. However, the yellow metal remained under pressure despite the sour market mood and lower Treasury yields.
Looking ahead this week, investors will continue to focus on debt ceiling discussions, banking sector worries, Fed expectations, and economic data for direction.
From a technical perspective, the XAU/USD pair holds a broader positive bias, although, in the short term, the yellow metal is losing momentum according to indicators on the daily chart. Both the RSI and MACD are trading flat right above their midlines. At the same time, the price hovers above the critical $2,000 level and within striking distance of its record highs, maintaining the risks tilted to the upside.
The spot price is being contained by the 20-day SMA on the downside, currently at $2,008, followed by the psychological $2,000 level and the $1,975 area. On the other hand, the immediate resistance area is seen around $2,025, followed by the $2,050 zone ahead of the all-time highs in the $2,070-75 region.
