GemForex | XAU/USD

In the most basic investors playbook, it is said to never put all our eggs in our basket. The idea is that each basket performs differently, at different times. During a crisis, some part of the basket is supposed to go up, and historically, during a time of impending downturn, commodities, particularly Gold, are supposed to bid up, as a natural hedge for keeping value.

 And yet, the United States, the United Kingdom, Canada, and Japan have decided to impose sanctions on the import of gold from Russia, the second-biggest producer of Gold in the world, and amid the questionable decision-making of the central Banks, the high inflation, rising interest rates, and impending fear of economic slowdown, keeps the golden bullion theoretically underpriced, and on every investors radar.

After a buy-back Asian session, Gold Price failed to sustain the rebound and turned south in the American session on Tuesday, having booked the second straight daily loss.

Gold Price is struggling to find demand so far this Wednesday, as investors appear non-committal and refrain from placing any directional bets on the metal ahead of the Policy Panel of the heads of the Fed, ECB, and BOE at the annual ECB Forum on central banking. Apart from the ECB Summit, the US final GDP revision and OPEC decision will be closely eyed for fresh cues on the broader market sentiment.

On the technical analysis front, gold bears remain hopeful for a clear downside towards 1807$, and the psychological threshold at 1800$, and may test a further downside towards the May yearly low at 1786$. Alternatively, the bullion may retrace towards the resistance around 1820$, and if the market sentiment improves further, potential resistance levels to watch out for are the 1823$ area, and a decent bounce towards the 1840$ cant be ruled out for the bulls.

However, the XAU/USD bears will remain hopeful if the prices remain below the stated lower resistance by press time.