Gold Talking Points:
- Gold (XAU/USD) rebounds off of monthly lows as risk aversion boosts demand for safe-haven metals
- Equity indices slide from recent highs as Evergrande fears leak into global markets
- Fed interest rate decision and remain key catalysts for Gold prices
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Gold and Silver prices have edged marginally higher as mounting concerns over global debt, inflation and Evergrande continued to spread through global markets.
The rising volatility combined with a shift in risk-sentiment, boosted demand for safe-haven Gold, weighing heavily of the equity market.
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With this week’s economic calendar loaded with major risk events, Gold prices achieved modest gains relative to the fall in equities as consumers continue to look for signs of tapering from the FOMC, who is expected to address current economic issues at their rate decision on Wednesday.
DailyFX Economic Calendar
Although Gold and Silver continue to hold a reputation as a hedge against inflation, recent economic data has raised the possibility of low interest rates remining in place for the remainder as Central Banks continue to wrestle with a variety of economic factors, including those around the pandemic.
Gold Price Analysis:
After rebounding off of the key Fibonacci retracement level of the 2021 move at $1744.19, Gold prices turned positive, allowing bulls to drive price action back towards the upper bound of the channel formation (shown on the weekly chart below).
Despite a shift in risk-sentiment, the 50% retracement of the 2020 move has continued to hold bulls at bay, holding firm at $1762.28 while the Commodity Channel Index (CCI) currently remains on the border of oversold territory.
Gold Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
Meanwhile on the daily time-frame, Gold prices are currently testing critical resistance at the above-mentioned move in an effort to regain the big level of resistance of $1800. With the CCI currently in oversold territory, this week’s major risk-events are likely to remain as the key catalysts for the imminent move.
Gold Daily Chart
Chart prepared by Tammy Da Costa using TradingView
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
