Gold dropping as markets recover, falling from 1,350.00 once again

A bidding USD and recovering stocks are sending Gold lower for Wednesday.
A lack of fundamentals is keeping the precious metal tied tightly to 2018's range.

Joshua Gibson FXStreet

Gold prices are slipping in Wednesday's early session as the US Dollar hangs onto gains fueled by improving US housing starts and industrial productions, and gold spot is sliding back into the 1345.00 area.

Gold has been stuck in a channel for the first quarter of 2018, and the precious metal is continuing to trend sideways, but the metal looks set to drift to the lower end of the range as declining highs provide falling resistance for spot prices, with little to bolster gold prices.

Gold Levels to watch

With Gold beginning to fall back towards the lower bounds of the range, the challenge for bears will be to carry the short action over the last swing low of 1,325.00 and into the bottom at 1,310.00, while bulls will be faced with tough resistance from the top of the range, spread across a resistance zone from 1,350.00 to 1,365.00.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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