Bullion Now Flat On The Day, Focus On Powell Tuesday And Wednesday

Gold prices are trading in a narrow range during the APAC session after rising 1.1% on Friday supported by lower US yields and dollar. Bullion is currently around $1855.55/oz, close to the intraday high, after reaching a low of $1850.87 following the disappointing China growth target. China is the largest consumer of the precious metal. The USD index is down slightly.

• Gold remains in a bearish trend but broke through the 50-day EMA of $1846 on Friday and has remained above that level, which has strengthened the short-term bullish conditions. The next level to watch is $1870.50, the February 14 high. Key short-term support is at $1804.90, the February 28 low, and a break through this would see recent bearish activity resume.
• There are no Fed speakers today and only US January factory orders and final durable goods orders print. The focus will be on Fed Chairman Powell’s appearances before a Senate panel on Tuesday and the House financial services committee on Wednesday. He is expected to reiterate that rates need to rise further, which will be negative for gold.