Gold support must hold to prevent impulse-leg down
Gold’s EMAs are in bearish formation. The green 5-day EMA is below the orange 13-day EMA, and the orange 13-day EMA is below the black 34-day EMA. There is a significant support area around the 1,305 level (blue shaded horizontal). Price retraced and tested the orange 13-day EMA. This held and gold may be looking to launch an attack on the support area again. It is interesting to note that the RSI(9) is below 50 and indicative of an underlying bearish momentum. Given that there is generally an inverse relationship between the USD and gold and that the USD is showing strength, gold bulls should be concerned here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.