ST-37 City, Mwali, Fomboni Moheli Comoros Union.
ST-37 City, Mwali, Fomboni Moheli Comoros Union.
Mar 11
2024
Gold price (XAU/USD) extends its consolidative price move heading into the European session on Monday and remains below the record peak touched on Friday.
From a technical perspective, last week's breakout through the previous record high, around the $2,144 area, favours bullish traders and supports prospects for additional gains. That said, the Relative Strength Index (RSI) on the daily chart is flashing extremely overbought conditions and makes it prudent to wait for some near-term consolidation or a modest pullback before placing fresh bullish bets.
Any meaningful corrective slide, however, is more likely to find decent support near Friday's swing low, around the $2,154 region, which should now act as a key pivotal point for intraday traders. A convincing break below might prompt some technical selling and drag the Gold price further towards the $2,125 intermediate support en route to the $2,100 round figure. On the flip side, bulls might now wait for a move beyond the $2,200 mark, above which the XAU/USD will enter uncharted territory and build on its recent strong gains registered over the past month or so.
In the meantime, growing acceptance that the Fed will begin cutting rates in June, bolstered by a spike in the US jobless rate to a two-year high during February, keeps the USD bulls on the defensive and acts as a tailwind for the Gold price. Apart from this, a softer risk tone, geopolitical tensions and concerns about a global economic slowdown should contribute to limiting the downside for the safe-haven precious metal. This, in turn, suggests that the path of least resistance for the XAU/USD is to the upside and any meaningful corrective decline might still be seen as an opportunity for bullish traders.