Where Did You Gold? - XAU/USD awaits fresh clues to extend two-day downtrend towards $1,700
Gold consolidates recent losses in a choppy range around $1,730.
Market sentiment stays heavy amid mixed signals from Fed, geopolitical tussle.
Strong US dollar weigh on the yellow metal, American data, risk-catalysts eyed.
Gold remains depressed in a $4.00 trading range, currently down near $1,726, amid the Asian session on Wednesday. The bullion dropped the most in three weeks the previous day as a broad risk-off mood propelled US dollar moves and disappointed commodity buyers.
While checking the US dollar strength, the Fedspeak could come forward as the key catalysts as policymakers’ efforts to reject reflation fears and challenges to the easy money couldn’t convince markets. Also on the same line were the tussle between the West and China as well as the extension of the coronavirus (COVID-19)-led lockdowns in Germany and Netherlands.
It’s worth mentioning that US President Joe Biden’s vaccine optimism and Treasury Secretary Janet Yellen’s defy tax-hike fears fell short of recalling the yellow metal buyers.
Amid these plays, US equities and bond markets pleased bears while the stock futures are waiting for fresh impulse by the press time.
Given the heavy economic calendar, comprising multiple activity numbers and Fed Chair Jerome Powell’s second inning in front of Congress, gold prices may remain volatile. It should, however, be noted that the precious metal sellers are likely to keep the reins amid a strong US dollar.
Repeated failures to cross 21-day SMA join a clear downside break below the immediate support line to directs gold sellers towards the $1,700 threshold. Meanwhile, a successful rise beyond the previous support and 21-day EMA, respectively around $1,738 and $1,741, will highlight the monthly top around $1,760.
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