XAU/USD surges above 1,316.50
Updated
Morning outlook - XAU/USD surges above 1,316.50
- During the whole previous trading day, the yellow metal was continuing to appreciate against the US Dollar. The only barrier that managed to stop the surge was a combined resistance level formed by the monthly R2 at 1,315.30 and the weekly R3 at 1,316.51.
- On the one hand, today the buck should try to restore some of the lost positions. On the other hand, the bullion now has a new, solid support level, which it can use to try to reach a new target, such as the monthly R3 at 1,359.22 or a long-term ascending channel's upper boundary near 1.350.00. Even though the market sentiment remains mixed, the second option in the nearest future seems a more viable scenario.
- But in the meantime, there is also a need to take into account an effect from escalation of the North Korean crisis and a release of data on the US CB Consumer Confidence today at 14:00 GMT as the subsequent weekly releases.
Trade closed: target reached
XAU/USD falls on US fundamentalsYesterday the buck quite expectedly appreciated against the gold. However, this movement was rather based on reaction from release of data on the US CB Consumer Confidence than some technical factors.
Similarly to the Euro, the fall continued until the pair encountered a support set up by the 55-hour SMA and the weekly R2 at 1,305.61.
In order to continue the surge, the yellow metal now has to cross a combined resistance level formed by the weekly R3 and the monthly R2.
Most probably, this attempt will fail and the pair will end the day in the decline. The main reason behind such assumption is a double release of the US macroeconomic data, among which one of them is Preliminary GDP. Moreover, both data sets are expected to show some positive developments.
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