XAU/USD (Gold) 1W analysis 28/02/21Hello everyone , as we all know the market action discounts everything :) as we all saw from the video we have multiple candlestick patterns and different indicators telling us that the market is still going down for the next few weeks , with no bullish reversal patterns in sight yet.
Fundamental analysis :
Gold strength in Q2 has been capped ahead of the key $1959/66 highs for the year and late 2010 and the subsequent move lower has seen the market break back below the 200-day average. Heading into Q3 this leaves the immediate risk lower in the broader consolidation range that has been in place since last August, according to strategists at Credit Suisse.
Gold struggled to capitalize on last week's modest gains and edged lower on the first day of a new trading week. The precious metal remained on the defensive through the mid-European session and was last seen hovering near the lower end of a one-week-old trading range, just above the $1,775 level. The downtick was exclusively sponsored by a modest US dollar strength, which tends to undermine demand for dollar-denominated commodities, including gold.
Despite mixed signals about the US inflation, investors remain concerned about the potential for an early move by the Fed to tighten its monetary policy. This, in turn, continued acting as a tailwind for the greenback and further weighed on the non-yielding yellow metal. That said, a fresh leg down in the US Treasury bond yields, along with the prevalent cautious mood around the equity markets might help limit any deeper losses for the safe-haven gold.
Investors might also refrain from placing any aggressive bets, rather prefer to wait on the sidelines ahead of Friday's release of the closely watched US monthly jobs report (NFP). Even from a technical perspective, the XAU/USD has been oscillating in a range over the past one week or so. This further makes it prudent to wait for a sustained break through the recent trading band before determining the next leg of a directional move for gold.
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