Gold Reclaims $1,920 Level Amid Market Indecision – 16 March 2023
16 Mar 2023
As US rates lose momentum, gold remains above $1,920.
Gold has regained its traction and climbed above $1,920 during the European trading hours on Thursday. The benchmark 10-year US Treasury bond yield declined below 3.5% and erased a large portion of its daily gains, allowing XAU/USD to stretch higher.
Gold price (XAU/USD) fades upside momentum despite recently bouncing off an intraday low to $1,908 during early Thursday. In doing so, the precious metal justifies the previous day’s failure to cross the $1,923 key hurdle while also taking clues from the market’s indecision amid looming fears of financial market distress.
A European G-SIB – a global systemically important bank, namely Credit Suisse, rocked finance markets the previous day, joining the line of Silicon Valley Bank (SVB) and Signature Bank from the US. However, the global policymakers’ rush to placate the market fears, recently by the Saudi National Bank, seems to prod the XAU/USD’s haven demand. Also weighing on the gold price could be the lackluster Treasury yields as bond traders lick their wounds after refreshing the multi-day low the previous day. Furthermore, intact hawkish hopes from the US Federal Reserve (Fed) and the European Central (ECB) also challenge the commodity buyers ahead of a likely another volatile day.
GOLD TECHNICAL ANALYSIS DAILY CHART:
Gold is currently trading in the up channel.
Gold is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
Gold resistance is at 1919.92 & its immediate support level is 1914.22
HOW TO TRADE GOLD
Gold is trading in an up channel; currently, it has broken its previous day’s high, and it is trading above the resistance zone, if it holds above the level then, we can see further upside.