Fundamental Descriptions: Gold was down on Thursday morning in Asia, with a steady dollar and elevated Treasury yields weighing on the greenback-priced bullion, whose outlook has already been dampened by the U.S. Federal Reserve’s aggressive stance on inflation. Global growth fears resurfaced and triggered a flight to safety theme across the board, reviving the safe-haven bids for the US dollar. The market turned risk-averse after hot inflation in the UK, Europe and Canada re-ignited growth fears, especially at a time when major global central banks are looking to tighten aggressively to curb raging inflation.
Technical View: At the time of writing, XAUUSD is testing the rising trendline support at 1813, having failed to defend the horizontal 21-Simple Moving Average (SMA) at 1816. The next critical support awaits at the multi-month lows of 1787.
Alternate View: The 200-SMA is critical to alleviating the bearish pressure, which could see gold bulls re-attempting resistance at 1819.