Brent Crude eyed on seven-year-high, Gold price pressured by key resistance


Gold price hovered around key resistance

The gold price has been hovering around $1820 since last week. It looks like the precious metal is in a phase of consolidation and looking to break through the resistance level, which has been exercising its pressure from the end of last year.

The pullback for the Gold (XAU/USD) since December was primarily due to the robust US dollar fuelled by anticipating Fed’s tighter monetary policy. However, last Friday’s softer US Retail Sales and this week’s rate cut by PBOC may probe market participants to rethink the US’s accelerated rate-hike plans and the real picture of inflation crisis.

The cooling of momentum can also be observed from the technical chart: RSI has been flattening around 50-60 level with the trading volume shrinking after maintaining at a flat level.

Looking ahead, the upcoming news-light week is more likely to see investors acting in a cautious fashion at least before the FOMC meeting scheduled on 25th. Only a convincing break above $1,825 and a close in the $ 1,830’s could negate the bearish outlook. Below the current level, the 20-days moving average, which sits around $1809 now, will provide strong support for the gold lovers.



Read More: Brent Crude eyed on seven-year-high, Gold price pressured by key resistance

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