- Staying near the 50% retracement level announced an imminent breakdown.
- The RBA brought high action today.
- The 38.2% retracement level is seen as a downside target.
The gold price continues to fall as the dollar strengthens amid a quiet market day. Yesterday’s analysis showed that the buyers were losing steam and that the dollar’s rally could push gold to new lows. This is what happened in the last hours, as gold dropped to 1,931 at the time of writing.
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The market was also affected by the Reserve Bank of Australia’s decision to keep the Cash Rate at 4.10%. The RBA Rate Statement caused high volatility and sharp movements in all markets. Meanwhile, the Eurozone reported weak data, but gold did not benefit from it.
It seems that only bad news from the US could stop gold’s decline. Today, the US will release the Factory Orders and the IBD/TIPP Economic Optimism indicators, which could influence market sentiment.
Tomorrow, there will be more important events to watch out for. The Australian GDP is expected to show a slight improvement from 0.2% to 0.3%. The Bank of Canada and the US ISM Services PMI will also announce their latest data.
The BOC Rate Statement could trigger high action on all markets, especially if there are any surprises. The BOC Rate is expected to stay at 5.00%, but any change could have a significant impact on gold prices.
Gold price technical analysis: Bears aiming for $1,924
Gold prices are under pressure as the dollar gains strength and the market is calm. Yesterday’s analysis pointed out that gold was stuck between two key levels: 61.8% and 50% retracement.
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The buyers failed to break above the 61.8% level, showing weakness. The sellers took advantage and pushed gold below the 50% level, signaling more losses. Gold also broke below the weekly pivot point of 1,935, which is another bearish sign.
The next target for the sellers is the 38.2% level at 1,924, followed by the S1 level at 1,917 and the 23.6% level at 1,909. These are important support levels that could slow down or reverse the downtrend. The lower median line (LML) is also a dynamic support that could offer some bounce.
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