Gold to negate bullish bias below $1960
|Gold (XAU/USD) is currently testing the $1973/72 support which would open the door toward $1966. Further down, a break below $1960 would dissipate the bullish bias. On the fundamental side, the yellow metal finds support from the US 10-year real or inflation-adjusted yield which hits record low of -1%, FXStreet’s Dhwani Mehta briefs.
Key quotes
“The negative US 10-year real yields, which wallow near record lows of -1%, are indicative of dour macro outlook, thus, underpinning the safe-haven bids for gold. Fresh US-China concerns over the Hong Kong and Tik-Tok issue could likely benefit the precious metal going forward. Next of relevance for traders remains the US Factory Orders data and ongoing US stimulus negotiations.”
“Gold is teasing a descending triangle breakout near $1976 levels, with the Relative Strength Index (RSI) still holding up above the midline in the bullish territory.”
“A technical breakout above the $1978 level could open doors for a retest of the record highs en route the $2000 barrier.”
“The immediate downside sees powerful support at $1973/72, the confluence of the 21 and 50-hourly Simple Moving Averages (HMA). The next support awaits at $1966, the horizontal 100-HMA, which will test the bears’ commitment. A break below the horizontal trendline support at $1960 will negate the near-term bullish bias, opening floors for further correction.”
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.