Gold could potentially make a bullish bounce off the first support level at $1933 and head towards the first resistance level at $1957. The $1933 level is an overlap support, coinciding with the 38.20% Fibonacci retracement, which could act as a strong support level.
Global Markets: Asian Stock Markets : Shanghai Composite up 0.64%, Hang Seng up 1.37%, ASX up 0.82% Commodities : Gold at $1969.25 (-0.68%), Silver at $22.50 (-0.63%), Brent Oil at $72.97 (-1.11%), WTI Oil at $67.05 (-1.14%) Rates : US 10-year yield at 3.502, UK 10-year yield at 3.369, Germany 10-year yield at 2.181 News … Continue reading Tuesday 21st March 2023: Asian Stocks Rise Ahead of Fed’s Next Interest Rate Decision
The XAU/USD chart shows a bearish overall momentum, but price could potentially rise towards the 1st resistance in the short term before reversing off it and dropping towards the 1st support. The 1st support level is at 1957.28, which is a pullback support level with a 23.60% Fibonacci retracement.
Asian markets fell on Monday despite a weekend rescue deal for Credit Suisse and a coordinated effort by central banks to ease liquidity strains in the global banking system. Investors remained wary of the potential fallout from the collapse of Silicon Valley Bank, which has triggered a confidence crisis in the financial sector.
Gold prices have been under bearish pressure for quite some time now, and the overall momentum of the XAU/USD chart remains bearish. There are several factors contributing to this bearishness, such as the downtrend being reinforced by a major descending trend line.
