XAU Trading Outlook
XAU/USD saw a good rally yesterday on the back of Bernanke’s comments out of the US regarding a somewhat pessemistic outlook for the US economy, taking the precious metal to a high of 1761. It opened in Asia at 1759 and traded lower to a support of 1755 before rallying to a session high of 1762. All eyes will be firmly fixed on the NFP announcement out of the US today. Technical analysis has a preference for buying gold at a pivot of 1740 with resistance at 1767 and 1790.
XAU/USD continued its’ lacklustre performance during the European and US trading sessions yesterday, ranging between 1740/50. This continued overnight in the Asian trading session with the range shifting slightly (1746/52). It seems the gold market is bracing for some news out of the Greek debt issues. We could possibly see an early break on Friday off the back of the US jobs data (Non-Farm Payroll). Technical analysis is pointing to a higher day for gold with a pivot of 1732 and resistance at 1760 and 1775.
XAU/USD the bias remains bullish with a preference to buy from 1728.0. Overnight China’s PMI surprisingly increased more than expected which implied there may be more demand for commodities in the near future and the shiny metal has jumped from 1732.0 to 1750.0 today. The initial resistance lies at 1760.0 and if this breaks it may make way for 1775.0. The short-term and mid-term trend is bullish.
XAU/USD seemed to have continued its positive correlation with EUR/USD in overnight trading, opening in Asia at 1738.75 and falling to a session low of 1726.47. Several European countries were downgraded on Friday, after the bond markets closed and this decision could have been a catalyst for movement on both the Euro and gold. Looking ahead, technical analysis has a preference to buy gold at a pivot of 1713 with resistance at 1740 and 1748.
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