Gold bulls trapped as price looks to $1,324 levels
- Gold unable to capitalise on stock market corrections.
- DXY better bid and stealing the show, hurting Gold bulls that are trapped.
Gold prices have declined further as the US session continues to favour the greenback as US yeilds continue to climb. Spot gold is currently at 1327.67 with a low of 1326.01 from a high of 1346.29.
Gold is going to be an interesting commodity to monitor this week given the correlation it has with the dollar and the stock market. It did not pick up as much demand relatively speaking to what we saw in the DJIA historical price lunge yesterday but gold is under pressure today with a minor correction on Wall Street. DJIA is now back above the 10-4hr SMA at 24473 while DXY trades 89.59 within 89.373 - 90.034 and +0.04%, (dented a little on the Atlanta Fed model's revision in Q1 GDP to 4% from 5.4%). In terms of future, April gold GCJ8, -0.36% dropped $5.50, or 0.4%, to $1,331/oz from a high of $1,349.30.
Gold levels
$1,327.37 was Friday's post NFP low that is under attack and now exposing $1,324.14 as the January 18th low. On the bid, the yellow metal can hunt down $1350, $1357 and $1366 with RSI's heading towards overbought territory.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
