Gold
Spot gold accelerated further down, losing 1% in Asia / early Europe trading on Monday and adding to Friday’s 1.1% drop.
Stronger dollar keeps the metal under pressure as investors turn focus to Fed’s policy meeting later this week.
The market sees recent spikes in inflation as temporary action that reduced demand for the yellow metal, used as a hedge against inflation, but slight optimism that the policymakers may start talks about tapering and possibly hint changes in the monetary policy due to improved economic conditions, could further inflate the greenback.
Fresh bears cracked important support at $1855 (June 4 trough), break of which would complete a failure swing pattern on daily chart and signal further weakness.
Extension of pullback from $1916 (June 1 peak) would face pivotal supports at $1840 (200DMA) and $1825 (Fibo 38.2% of $1677/$1916 upleg) with break here to confirm reversal.
Rising bearish momentum and south-heading RSI / stochastic on daily chart, support near-term action. Upticks need to hold below $1877 (bull-trendline off $1855 higher low) to keep fresh bears in play.
Res: 1866; 1877; 1883; 1888.
Sup: 1855; 1840; 1825; 1815.
Interested in XAU/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold climbs above $2,340 following earlier drop
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.