Gold Price Analysis: XAU/USD jumps back above $1700 as risk-off mood intensifies
- XAU bulls back on the bids as risk-on seeps back in full steam.
- Australia, US tensions with China escalate and boost US dollar.
- $1706 is the levels to beat for a sustained break higher.
Gold (XAU/USD) stages a solid rebound from daily lows of 1692.23 and attempts another run above the 1700 mark, as the investors scurried up for safety amid escalating row between Australia and China takes the limelight.
Despite increased haven demand for the greenback amid souring US-China and Australia-China relations, gold has managed to recover ground.
Although, the further recovery looks elusive, as the US dollar is likely to extend its latest upside amid expectations of an upbeat economic outlook likely to be presented by the US Federal Reserve (Fed) on Wednesday.
Meanwhile, the latest news that the French Finance Ministry has declared a state of emergency for Aerospace industry unnerves the investors, as the European equities drop in early trades, in turn, underpinning the yellow metal.
Looking ahead, the sentiment on the global equities and USD priced action will remain the main drivers for further gold trades.
Gold: Technical levels to watch
With the renewed upside, the next resistances are aligned at 1706 (100-HMA) and 1716.69 (Friday’s high). To the downside, immediate support is seen at 1690 (round figure). A break below which the 1677.73 (Monday’s low) will be tested.
Gold: Additional levels