The XAU/USD pair struggles to make a decisive move on Tuesday and continues to trade in a relatively tight range around the $1,500 handle. Reports of Saudi Arabia's crude oil production returning to normal levels in the next two to three weeks helped market sentiment recover in the second half of the day and made it difficult for the precious metal to continue to gather strength as a traditional safe-haven. However, Wall Street's main indices remain in negative territory and the 10-year US Treasury bond yield is down more than 2% on the day suggesting that risk-on flows are not strong enough to dominate the market. On the other hand, the Dollar lost its traction as investors are looking to re-position themselves ahead of the Federal Open Market Committee's monetary policy announcements.
As expected Gold prices traded in a tight range during yesterday’s session after failing to break above the $1506.02 resistance level and continued to hover around the $1500 level. The price is currently just above it as the momentum edges higher and seems about to break above the trend line presented on the RSI chart. We will be focusing on the upside as we will be watching closely the $1515.75 resistance level.
Support: 1494.87/ 1486.98
Resistance: 1506.02 / 1524.15