XAU/USD consolidated Friday’s gains and found strong resistance at the 200-day SMA around $1,930.
US Treasury yields continue to rise and weigh on the precious metal.
Geopolitical tensions in the Middle East may limit the downside potential.
At the beginning of the week, the XAU/USD retreated towards $1,920 and consolidated Friday’s rally, which saw the spot price rising by more than 3%.
Markets will remain quiet on Monday, and investors await Tuesday’s Retail Sales figures from the US from September to continue placing their bets on the Federal Reserve’s (Fed) next decisions. As for now, US Treasury yields are rising and may suggest that markets are gearing up for one more hike by the Fed in 2023, and as long as hawkish bets remain elevated, the yellow metal may have difficulty finding demand. The 2, 5 and 10-year yields rose to 5.08% and 4.70%, with all three seeing more than 0.50% increases.
On the positive side, tensions escalate in the conflict between Israel and Hamas, and the precious metal may benefit from market participants seeking refuge in safe-haven assets.
XAU/USD Levels to watch
Considering the daily chart, XAU/USD presents a neutral to bullish outlook, with the bulls gaining significant ground last week. Despite pointing south, the Relative Strength Index (RSI) jumped to positive territory on Friday, while the Moving Average Convergence (MACD) histogram prints larger green bars. In the larger context, the price got rejected by the 200-day Simple Moving Average (SMA) at $1,930 but managed to close above the 20 and 100-day Averages, indicating that the overall trend is favouring the buyers.
Support levels: $1,910, $1,900, $1,880.
Resistance levels: $1,930 (200-day SMA), $1,950, $1,970.
XAU/USD Daily Chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/gold-price-forecast-xau-usd-gets-rejected-by-the-200-day-sma-us-yields-rise-202310161614