Gold attempt to regain its bullish momentum faltered around $4,700, with the precious metal now struggling to retain the $4,400 mark. The XAU/USD pair peaked in late August amid reduced speculation that the United States (US) Federal Reserve (Fed) would hike interest rates in September.
Gold has snapped a two-day losing streak early Tuesday, staging a decent comeback toward $4,450 after finding strong buyers below the $4,400 level.
Base case: while above the 200-day SMA near 0.6990, spot should maintain the constructive stance. Of note is that the pair is navigating close to the overbought zone (daily RSI flirting with 69), which has the potential to trigger a “technical” correction.
Gold has kicked off a new week on a bearish footing, resuming the previous downside while battling the $4,400 level amid a United States (US) holiday-led light trading.
Joy can’t last forever, can it?
The week in one sentence: Speculative positioning became more defensive in the week ending September 1. Yen short positioning recorded the largest deterioration, while Gold length also retreated.