Gold prices remained stable on Monday as investors analyzed the U.S. Federal Reserve's decision to signal potential future interest rate hikes. The lack of demand for gold is evident in the falling holdings of global gold exchange-traded funds while higher interest rates and yields are putting pressure on the precious metal. The dollar is at a six-month high, and 10-year Treasury yields are near a 16-year peak.Investors are also awaiting the personal consumption expenditures price index on Friday and monitoring the spending bill negotiations in Washington which could result in a government shut down if there is no decision made until September 30th.
From the technical point of view gold prices have corrected to the downside in recent sessions after finding sufficient resistance on the 100 day moving average and the bearish trend line. The faster moving average (50 days) is trading below the slower one (100 days) indicating that the overall bearish momentum is still valid while currently the price is testing the resistance of the 38.2% of the weekly Fibonacci retracement and the support of the 50 day moving average.
U.S data coming up on Thursday and Friday are expected to create volatility on the majority of the dollar pairs so any trading initiated on gold this week needs to take into account money management rules and risk assessment before opening the trades.
From the technical point of view gold prices have corrected to the downside in recent sessions after finding sufficient resistance on the 100 day moving average and the bearish trend line. The faster moving average (50 days) is trading below the slower one (100 days) indicating that the overall bearish momentum is still valid while currently the price is testing the resistance of the 38.2% of the weekly Fibonacci retracement and the support of the 50 day moving average.
U.S data coming up on Thursday and Friday are expected to create volatility on the majority of the dollar pairs so any trading initiated on gold this week needs to take into account money management rules and risk assessment before opening the trades.