Gold Prices Struggle Near Five-Month Low Amidst Uncertainty
Gold prices persist near a five-month low, striving to find stability following a recent sell-off, despite another increase in Treasury yields overnight. A potential respite could emerge if the US dollar rally takes a pause, coupled with a correction from the near-term oversold technical conditions.
Nevertheless, signs of a definitive reversal remain elusive, with the precious metal trading below its 200-day moving average for the first time this year. Additionally, its weekly Relative Strength Index (RSI) has dipped below the critical 50 level for the first time since November 2022, indicating a continued presence of sellers. Bulls may require a return above the 200-day moving average for increased confidence, while on the downside, the $1,850 level could serve as the next support to watch.
XAUUSD
SELL 1896 -1898🕯
✅ TP1: 1889
✅ TP2: 1882
⚠️ SL: 1905
Nevertheless, signs of a definitive reversal remain elusive, with the precious metal trading below its 200-day moving average for the first time this year. Additionally, its weekly Relative Strength Index (RSI) has dipped below the critical 50 level for the first time since November 2022, indicating a continued presence of sellers. Bulls may require a return above the 200-day moving average for increased confidence, while on the downside, the $1,850 level could serve as the next support to watch.
XAUUSD
SELL 1896 -1898🕯 ✅ TP1: 1889
✅ TP2: 1882
⚠️ SL: 1905
Comment:
Running + 30Pips✅ ✅
Comment:
* Spot gold, denoted as GOLD, maintained its position at $1,894.91 per ounce as of 0117 GMT, remaining slightly above the five-month low of $1,883.70 reached last week. Meanwhile, U.S. gold futures, represented as GOLD, saw a 0.1% increase, reaching $1,923.90.
Comment:
* On Monday, gold closed with a gain of approximately 0.3%, marking its most substantial daily increase in over two weeks, following a streak of losses spanning five consecutive sessions.
* The yield on 10-year Treasury notes reached levels last observed during the Great Financial Crisis in November 2007, fueled by the robust performance of the U.S. economy, which reinforced expectations that the Federal Reserve will maintain higher interest rates for an extended period.
* The yield on 10-year Treasury notes reached levels last observed during the Great Financial Crisis in November 2007, fueled by the robust performance of the U.S. economy, which reinforced expectations that the Federal Reserve will maintain higher interest rates for an extended period.
Comment:
* To gain insights into the trajectory of interest rates, market participants will closely watch remarks from Federal Reserve Chair Jerome Powell during a gathering of central bankers in Jackson Hole, Wyoming, this Friday. Elevated interest rates contribute to higher bond yields, diminishing the appeal of non-yielding gold.
Comment:
The global stock market rally is showing signs of weakening, as increasing bond yields, elevated energy costs, and heightened concerns regarding China's economic stability are eroding investors' willingness to take risks, despite months of gains in equity markets.
