#XAUUSD @ 1738.95 -imp levels: Gold edges higher on Tuesday and snaps a six-day losing streak to a multi-week low.

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• Gold edges higher on Tuesday and snaps a six-day losing streak to a multi-week low.
• Softer US bond yields prompt some USD profit-taking and offer support to the metal.
• Hawkish Fed expectations should continue to underpin the greenback and cap gains.

The pair currently trades last at 1738.95.

The previous day high was 1749.2 while the previous day low was 1727.87. The daily 38.2% Fib levels comes at 1736.02, expected to provide support. Similarly, the daily 61.8% fib level is at 1741.05, expected to provide resistance.

Gold gains some positive traction on Tuesday and moves away from a four-week low touched the previous day. The XAU/USD, for now, seems to have snapped a six-day losing streak and sticks to its modest recovery gains, around the $1,740 area through the first half of the European session, though lacks follow-through.

A slight US dollar pullback from a two-decade high turns out to be a key factor offering some support to the dollar-denominated gold. Following the recent strong run-up, the USD bulls to take some profits off the table amid a softer tone surrounding the US Treasury bond yields. In fact, the yield on the benchmark 10-year US government bond dips back below the 3.0% threshold, which further benefits the non-yielding yellow metal.

That said, a goodish recovery in the equity markets, along with hawkish Fed expectations, should hold back traders from placing aggressive bullish bets around gold. Despite signs of easing US inflation, investors seem convinced that the Fed will stick to its policy tightening path. The bets were reaffirmed by the recent hawkish comments by several Fed officials, which should act as a tailwind for the US bond yields and the greenback.

Investors also anticipate a more hawkish message from Fed Chair Jerome Powell’s speech at the Jackson Hole symposium later this week. Apart from this, this week’s important US macro releases will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to gold. This further warrants some caution before confirming that the XAU/USD has formed a bottom and positioning for any further appreciating move.

In the meantime, traders on Tuesday will take cues from the flash US PMI prints, due for release later during the early North American session. This, along with the US bond yields, will drive the USD demand. Apart from this, the broader risk sentiment would allow traders to grab short-term opportunities around gold.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1739.0 at the time of writing. Pair opened at 1736.4 and is trading with a change of 0.15 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1768.3, 50 SMA 1772.63, 100 SMA @ 1827.34 and 200 SMA @ 1839.62.

The previous day high was 1749.2 while the previous day low was 1727.87. The daily 38.2% Fib levels comes at 1736.02, expected to provide support. Similarly, the daily 61.8% fib level is at 1741.05, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1726.45, 1716.49, 1705.12
• Pivot resistance is noted at 1747.78, 1759.15, 1769.11

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