Gold price has had a good start to the week and is trading on an uptrend. The precious metal ONS is priced at over $ 1,777 per head. The series of OCBC Bank strategies, on the other hand, expects a decline in the yellow metal market. According to the OCBC Bank strategy list, US Treasury yields started to rise after the fall in April, and downside pressure on gold could intensify if this trend continues.
Analisdollarser: The upward movement in gold is likely to be limited
The price of gold rose steadily during the day and climbed to new daily highs around the $ 1,780 zone early in the European session. The precious metal caught new offers on the first day of a new trading week and recovered from a two-week low in the region of about $ 1,756 it touched last Thursday. This marked the first day of a positive move in the previous three trading sessions, supported by a combination of diverse factors.
The US dollar struggled to take advantage of a good recovery from the lowest level since Feb.26 last week, with expectations that the FED would keep interest rates low for longer. This was seen as a key factor providing some support for dollar-denominated commodities. Meanwhile, according to some analysts, the upward movement is likely to be limited amid the underlying bullish sentiment in financial markets that tends to weaken the safe-haven XAU / USD. According to analysts, investors can also avoid placing aggressive bets ahead of Fed Chairman Jerome Powell’s scheduled speech later this Monday.
Haresh Menghani: Gold can target these levels during the next sessions!
Meanwhile, according to analyst Haresh Menghani, the announcement of the US ISM Manufacturing PMI could affect the US dollar price cuts and give some momentum to XAU / USD during the early North American session.
From a technical point of view, any subsequent strength is likely to face stiff resistance near the 100-day SMA around the $ 1.786 zone. This is followed by recent high fluctuations around the $ 1.796-98 zone. If this clears steadily, it should set the stage for additional gains in the near term, according to Haresh Menghani.
OCBC Bank strategies series: Gold price will probably go down! These levels are fair value…
The price of gold is being priced on the green board, but it is unclear whether the uptrend will continue. There is a lot of macro data available this week that will affect prices for yellow. While investors were unlocked by this data, a bearish forecast came from the OCBC Bank strategy list. Noting the series of US Treasury returns, OCBC Bank’s strategy dolls made the following statement:
Gold began to fluctuate in the strong Non-Farm Payroll report. The recent increase in US Treasury yields and the tightening of asset prices globally (including commodities) began to manifest as gold prices began to appear higher than current inputs. Our model is currently 1. 670-1. It suggests that it has a fair value of $ 770 / ONS and could continue to decline if Treasury yields continue to rise. A strong non-farm payroll figure (> 1 million) will likely reinforce risk sensitivity and increase commodities rapidly. Gold will likely fall in this scenario. The USD is likely to strengthen on the strong numbers, but it seems unlikely that it will put a blow on the prices.