Gold’s negative tendencies are picking up again after the yellow metal found some footing around the level of 1,687, logging a nine-month low, ahead of the significant support zone of 1,660-1,682. The gold scale seems to be tilting increasingly negative, as the bearish Ichimoku lines, which have controlled the commodity from the level of 1,876, are continuing to curb improvements in the price.
The falling 50- and 100-day simple moving averages (SMAs), and their recent bearish crossovers of the 200-day SMA, appear to be bolstering the doom and gloom in the precious metal.
The short-term oscillators are also reflecting stubborn negative sentiment. The MACD is keeping some distance below the zero threshold and is falling underneath its red trigger line, while the RSI, which is trailing beneath the 30 mark, is looking set to dip deeper into oversold territory. The stochastic %K line has yet to signify any pickup in positive momentum, thus the oscillator is giving weight to the downside.
If selling interest persists, the initial deterrent could be the nine-month low of 1,687 ahead of the critical support section of 1,660-1,682, which contains the June 2020 trough of the rally that pushed the commodity to it’s all-time high of 2,074. Should this foundation break apart, the price may dive towards the 1,643 barrier, identified in March 2020, before the bears challenge the 1,600 handle.
Otherwise, if buyers guide the price northwards, first resistance could develop from the 1,717 border ahead of the 1,741 nearby high. Next, the red Tenkan-sen line at 1,749 may provide some friction prior to the key resistance band of 1,757-1,764. Successfully overstepping this too, the bulls may then hit the blue Kijun-sen line at 1,778 before propelling for the 1,816 resistance.
Summarizing, gold’s bearish demeanour could sustain its downward trajectory if the price continues to deteriorate below the SMAs and the Ichimoku lines.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
Bank of Japan keeps interest rate steady, as expected
The Bank of Japan (BoJ) board members decided to hold the key interest rate steady at 0%, following its April monetary policy review meeting on Friday. The decision came in line with the market expectations.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.