Trading | 1 month ago
Gold futures and CFD's skid below the $1,789 an ounce level on Wednesday as bulls failed to establish a firm support above the $1,800 price level. The upward momentum in the gold is not visible in the short- term as the US dollar continues to rally.
As a result of this, XAU/USD continues to trade lower after hitting multiple key resistance barrier. Gold price is down by 1.8% against the US dollar in this week so far. Investors are concerned over the outcome of the multiple economic events due in this month. These events are mostly in the favor of U.S. dollar as gold looks highly vulnerable at this point.
If gold breaks below the key support level at $1774, then bearish sentiment could take over completely and gold prices may touch the $1750 price level within few days. Gold prices are dictated by the value of U.S. dollar in international markets and the US dollar continues to rally higher on strong economic recovery from the pandemic. Currently investors are also waiting for the European Central Bank’s monetary policy decision on asset tapering and rate hike projection.
The short-term technical outlook for gold is bearish as the relative strength index (RSI) indicator is hovering over the bearish territory. Even MACD suggests that the gold can fall more. Therefore, one must look for selling opportunities in gold near $1774 price level.
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