ST-37 City, Mwali, Fomboni Moheli Comoros Union.
ST-37 City, Mwali, Fomboni Moheli Comoros Union.
Apr 04
2024
Gold stays in a consolidation phase below $2,300 after reaching a new record-high above this level earlier in the day. The benchmark 10-year US Treasury bond yield holds steady above 4.3% ahead of Fedspeak, limiting XAU/USD's upside.
From a technical perspective, the extremely overbought Relative Strength Index (RSI) on the daily chart makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. Meanwhile, any corrective decline might now find some support near the $2,280 level ahead of the overnight swing low, around the $2,265 region. Some follow-through selling, however, might drag the Gold price further below the $2,250 level towards the weekly through, around the $2,229-2,228 zone. The latter should act as a key pivotal point, which, if broken decisively, should pave the way for deeper losses and expose the $2,200 psychological mark.
Apart from this, the prevalent US Dollar (USD) selling bias, led by the uncertainty over the Federal Reserve's (Fed) rate-cut path, might further contribute to limiting the downside for the Gold price. Traders might also prefer to wait on the sidelines ahead of the release of the US monthly employment details, popularly known as the Nonfarm Payroll (NFP) report on Friday. Hence, it will be prudent to wait for strong follow-through selling before confirming that the XAU/USD has topped out in the near term and positioning for deeper losses.