The price of gold (XAUUSD) remains in the negative early this week as US Treasuries is in a rapid rally, driving a relentless rise in yields and putting pressure on gold.
Early in the American session, XAU/USD is trading around 1,906 at the time of writing. Gold is under strong bearish pressure. If it continues, the price could find some support at 1,890. This zone represents the low of March 16 which could offer a technical bounce and will be an opportunity to buy around this zone.
Last week, since gold had hit 1,966, it started a bearish wave. The metal has been very bearish for several sessions and a technical correction is likely in the next few days as long as gold settles above 1,890.
On the other hand, in the European session the EMA 200 was broken, which could give us a new opportunity to sell around 1,921 and gold could again resume its downward movement and reach the area of 1,890 and 1,875. This level coincides with 6/8 Murray which represents strong support.
On the other hand, we note that the uptrend channel that was broken yesterday rapidly accelerated gold's decline. A retracement back into this area could resume the downtrend.
Since March 18, the eagle indicator has been generating a positive upward signal. However, these days were negative for gold as a response to hopes for progress in peace talks between Russia and Ukraine. This fueled positive market sentiment that pushed gold down.
Our trading plan for the next few hours is to sell at current price levels of 1,906, with targets at 1,890 and 1,875. If gold perks up and trades around 1,890 in the next few hours and consolidates above this area, then we can buy with targets at 1,900 and 1,921.