Gold Price Analysis: Under pressure in Asia after Friday's Doji
Gold is trading near $1,722 per ounce, representing a 0.30% drop on the day, having hit a high of $1,729 during the early Asian trading hours. The metal is flashing red, having carved out a Doji candle on Friday, a sign of indecision in the market place.
A bearish Doji reversal would be confirmed if the yellow metal closes Monday under Friday's low of $1,710. That would also confirm a head-and-shoulders breakdown on the hourly chart. A bearish close, if confirmed, would open the doors for a drop to $1,658 - the low of the long-tailed candle created on April 21.
Market Outlook: Focus turns to Central Banks with decisions and data due
A couple of critical technical supports were breached last week – $1603 XAUEUR and $1725 XAUUSD – as the current leg higher came on the back of the gloomy EU and US data, which is bound to get worse. And the bounce was exacerbated by the situation in Europe; the talk of potential further government spending under an EU budget seems to be driving XAUEUR back to the all-time highs around 1600.
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