Gold hits fresh 2018 low, RSI at lowest since December 2016

Gold fell to $1,253 in Asia - the lowest level since December 18.
The RSI fell below 30.00 to show oversold conditions.

Omkar Godbole FXStreet Contributor

Gold is likely losing its allure as a safe haven asset.

The yellow metal fell to $1,253 in Asia - the lowest level since December 18 despite the rising odds of a full-blown trade war between the US and the rest of the world.

Gold is also a currency with limited supply and cannot be printed out of thin air. So, its decline is likely an indication that other paper currencies have little room to rally against the greenback.

As of writing, gold is trading at $1,255 - down 8.1 percent from the April high of $1,365. The sharp sell-off has pushed the 14-day relative strength index (RSI) below 30.00 (into oversold territory).

Currently, the RSI is at the lowest level since December 2016. So, a minor corrective rally could be in the offing.

Gold Technical Levels

Resistance: $1,259.55 (session high), $1,272 (4H 50MA), $1,282 (May 21 low).

Support: $1,235 (50-month MA), $1,213 (May 2017 low), $1,200 (psychological level).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold extends losing spree as US bond yields hold ground

Gold extends its losing streak for the fourth trading day on Wednesday, trading 0.2% lower to near $4,115 in the Asian session. The precious metal is under pressure as United States Treasury Yields on the back of significant gains in oil prices in past few weeks.

Ethereum bounces off $2,400 for a sixth day despite ETF outflows

Ethereum (ETH) bounced again near the $2,400 level on Tuesday, the sixth straight day, as its on-chain cost basis and key moving averages have stood as key support levels. The sub-$2,400 level has proven to be a strong support for the top altcoin over the past week amid macro pressures. Buyers have repeatedly stepped in to defend prices whenever it falls below the level.

UK CPI set to accelerate, paving the way for a BoE interest rate hike in November

The United Kingdom Office for National Statistics is expected to release September’s Consumer Price Index on Wednesday at 06:00 GMT. These figures will be accompanied by the Producer Price Index and the Retail Sales report.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.