- Gold has started to erode the 1290 psychological level on failures through 1300 round number.
- Gold targets a break below 1275 for a look in at a confluence area at 1250.
The US dollar index has been a major culprit in the weakness in gold prices of late. However, the greenback seems to have hit a roadblock. The DXY was turned lower at 97.71 highs and is down at 97.20 today as markets cash in on the rallies FX space.
"We continue to see new bids in the cards for the yellow metal, as macroeconomic data is likely set to underperform for a while longer," analysts at TD Securities argued:
"While we still don't expect much flow for the moment from algorithmic trend followers, we reiterate that the bar is relatively low for CTAs to significantly add to their length in gold, which argues that the metal will continue to have an asymmetric reaction to the upside on any disappointments."
Gold levels
Gold is testing below the 23.6% Fibo of the late 2015 lows to 2016 highs at 1296. Below there is the 61.8% Fibo of the 2018 swing highs and lows at 1287. 1258 is the 23.6% Fibo of the 2012 highs to late 2015 swing lows. The main focus, however, stays with the 2018 August lows to 2019 swing highs range and 1275 is a key price target as being the 38.2% Fibo of that same range. Below there opens risk to 1250, a confluence area. On the upside, 1315 is the next key target that meets the trend line prior support of the rising channel.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.