Increasing US bond yields and reducing geopolitical conflict helped gold to lose most of its value. Having reached a high of $4116 last week, it is now around $4033.
Rising U.S. Treasury yields, a stronger currency, and diminishing market predictions for near-term Federal Reserve rate reductions or looser monetary policy have driven gold under great pressure in the last two days. Higher yields make non-yielding assets like gold less appealing; a stronger dollar raises its price for foreign purchasers. Concurrent with this, increased risk reduction across markets has sparked profit-taking and forced liquidation of leveraged holdings following the latest rebound, therefore quickening the short-term decline. Looking ahead, Treasury yields, the dollar's strength, and any changes in Fed policy predictions will be the main things to watch.
|
Technicals |
CMP -$4033 |
Trend |
|
|
1- Hour chart |
Value |
|
|
|
55 EMA |
$4064 |
CMP <55 EMA |
Bearish |
|
200- EMA |
$4141 |
CMP <200- EMA |
Bearish |
|
365- EMA |
$4260 |
CMP <365 EMA |
Bearish |
Near -term support -$4000. Major bearishness below $3940. Any violation below $4000 targets $3980/$3940. Near-term resistance - $4050/$4064/$4080/$4116/$4145/$4205/$4245.
|
Momentum indicator (4-hour chart) |
Inference |
Value |
|
CCI(50) |
Bearish |
-36 |
|
v |
Bearish |
Strength increased from 15.39 to 16.81 |
It is good to sell on rallies around $4052-55 with SL around $4100 for a TP of $3940/$3900/$3800.
