Gold Ends 4 Days Losing Streak

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Gold Ends 4 Days Losing Streak

Gold (Xau/Usd) Reclaims $2400, Ends 4-Days Losing Streak

Gold (XAU/USD) has finally shattered the $2400 resistance and turned it into support on Wednesday. In the process, Gold (XAU/USD) has also ended its losing streak of 4 days, including the market mayhem from Monday.

This move comes at a time when the US bond yields are turning higher while the US Dollar is also gaining steam. At the same time, the stock markets are also positive for the 2nd day in a row.

Gold Trades Above 55 Sma

Although the situation is not ideal for Gold, there are still plenty of risks that should be taken into consideration. Including increased geopolitical tension, US elections, and weakness in China's economy.

The recent data from China has shown weak exports,, which doesn't bode well for the entire region. This is also a sign that the PBoC will likely take some action to boost exports and economic activities.

If we see an increase in the rate differential between other currencies and the USD, Gold (XAU/USD) will return to its bullish phase.

Technical analysis of Gold (XAU/USD) shows that the recent price levels are ideal for buyers. If we look back, gold (XAU/USD) has continued to trade above 55 SMA since July ended. Even when the Gold (XAU/USD) declined below the 55 SMA on Monday, it quickly bounced higher.

If Gold (XAU/USD) fails to hold its 55 SMA on the D1 chart, it will cause trouble again for Gold Bulls. Also, the 100 SMA, which is nearly $2344, will be next in line to provide support if the 55 SMA fails.

Once the 100 SMA is taken out of the equation, it will be a field day for the Gold (XAU/USD) bears. According to some experts, a break of this SMA will lead to a 2% or more loss in the gold (XAU/USD) prices. In that case, a revisit to the $2281 handle will be back on the cards with the next target at $2200.

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