Gold (XAU/USD) shows a little improvement with market sentiment. With prices around $1,763 during Thursday’s Asian session, gold touched the weekly low and then jumped slightly from $1,746 the previous day. The jump comes perhaps on hopes that the US debt filibuster will pass after rumors emerged that Senate Republican Leader Mitch McConnell is in favor of a short-term stretch, till December, for the debt limit.
While the price seems stable; there are bearish technical signals which might derail any hope the yellow metal has at getting up past $1.8K any time soon. Water-cooler chats surrounding FED tapering is just one of a few highlights along with recent US Jobless Claims and the upcoming jobs report Friday that are keeping investors very shy and unsure of where the market will head.
Gold has been stuck inside a descending triangle for 3 weeks. A break of the $1,745 triangle support would put the bears clearly in control and drop gold into the $1,600’s. On the flip side a breakout of $1,800 could keep the bulls alive and entice any sidelined investors to put more skin in the game.