Gold price clings to $2,400, snapping a four-day downtrend early Tuesday. The US Dollar turns south with US Treasury bond yields, despite risk-off returning. China’s economic worries could act as a headwind for Gold price. The daily technical setup continues to favor Gold buyers but $2,425 holds the key. Gold price appears to be benefiting from a typical market caution and renewed China’s economic worries and ahead of key US earnings reports.
The 21-day and 50-day Simple Moving Averages Bull Cross also remains in play, justifying the constructive outlook for Gold price. if the Gold price rebound gathers strength, the $2,425 static resistance will be tested. The next topside barrier is seen at the previous lifetime high at $2,450, above which buyers will target the new all-time high of $2,484 reached last week.