Article by: ETO Markets
Although there was no follow-through, the gold price staged a respectable intraday recovery of almost $40 from a two-week low set in the wake of the better-than-expected monthly employment data on Friday. Because traders were hesitant to place strong directional wagers around the non-yielding yellow metal due to uncertainties around the Federal Reserve's rate-cut trajectory, the momentum lost steam close to the $… zone.
The XAU/USD daily chart indicates that it encountered buyers near its 20-SMA which is weakly directional. This occurred for the second day in a row. In the meanwhile, there are no discernible slopes when the 100- and 200-SMAs intersect at $... As long as the shining metal holds the $… base, the negative potential appears to be restricted overall.
The 4-hour chart indicates that the pair is neutral in the short term. XAU/USD is trading above a flat 100-SMA but below a bearish 20-SMA. Simultaneously, technical indicators have somewhat increased but are still in negative territory, indicating that buyers are outpacing sellers intraday.
