Gold prices held steady above five-month lows of around $1,810 in early March as investors await the central bankers' gathering in Jackson Hole for insights on the economy and interest rates later this week. Spot gold rose slightly to around $1,894 per ounce, while U.S. gold futures also increased. The focus for this week will be on Federal Reserve Chair Jerome Powell's speech as central bankers from around the world assemble in Jackson Hole for their annual conference, where discussions on higher long-term interest rates and inflation may impact gold prices. Rising US Treasury bond yields, which reached a yearly high, and China's smaller-than-expected lending rate cut also influenced market sentiment.
From the technical point of view gold prices have been trading in a rather aggressive bearish trend for the last month pushing the price of the precious metal below the psychological support of $1,900. The faster moving averages of 20 & 50 days are trading below the slower 100 days moving average confirming the bearish momentum in the market while the Stochastic oscillator is in the extreme oversold levels for at least 2 weeks. In addition the price has been “walking the band” in the last 10 sessions showing that volatility was also a contributing factor to the steep decline in the price of gold.
All in all the area of $1,900 is now acting as a psychological resistance of the round number while this area is also the level of the 61.8% of the weekly Fibonacci retracement making it a strong technical resistance point on the chart.
From the technical point of view gold prices have been trading in a rather aggressive bearish trend for the last month pushing the price of the precious metal below the psychological support of $1,900. The faster moving averages of 20 & 50 days are trading below the slower 100 days moving average confirming the bearish momentum in the market while the Stochastic oscillator is in the extreme oversold levels for at least 2 weeks. In addition the price has been “walking the band” in the last 10 sessions showing that volatility was also a contributing factor to the steep decline in the price of gold.
All in all the area of $1,900 is now acting as a psychological resistance of the round number while this area is also the level of the 61.8% of the weekly Fibonacci retracement making it a strong technical resistance point on the chart.