Gold is reversing its recent run to three-week tops of $1815, within the red for the primary time during a week. FXStreet’s Dhwani Mehta explains why downside appears more compelling for XAU/USD.
See – Gold Price Forecast: XAU/USD to advance nicely towards the 200-DMA at $1829 – Credit Suisse
XAU/USD has recalled the sellers
“The resurgent demand for the US dollar amid risk-averse market conditions, in light of rising coronavirus cases in Asia and therefore the Fed’s tapering expectations, weighs negatively on the USD-denominated gold. Further, a recovery within the US 10-year Treasury yields from five-month lows also collaborates with the downside within the non-yielding gold.”
“Later today, the US Jobless Claims data are going to be eyed for fresh dollar trades. within the meantime, the dynamics within the yields and therefore the greenback will still play out, investors await fresh covid updates and ECB’s decision on its inflation target.”