Gold has dropped back closer to a multi-week low on Monday. Fears of deflation triggered by lockdowns in China have helped Gold continue its slide lower. Over the course of the last few weeks, the lockdowns in Shanghai and potentially Beijing have led to poor manufacturing data while inflation remains low
“The Fed is widely expected to hike interest rates by 50 bps. Apart from this, traders will take cues from this week’s important US macro releases, including the closely watched US monthly jobs report on Friday. This, in turn, will play a key role in determining the next leg of a directional move for the XAU/USD.”
The $1900 round figure now seems to act as an instant strong resistance ahead of the $1,906-$1,907 channel and Friday’s swing high, around the $1,920 zone. Prolonged strength beyond could trigger a short-covering move towards the $1940 region, above which the recovery momentum could get extended to the $1,962 resistance.”
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