- Gold has extended the 20th Feb downside that found support at $1,320, now falling down to a fresh low of $1,317, testing late Jan’s critical trend line support level.
- Gold is currently trading at $1,319, slightly up from the $1,317 low having fallen from a lofty $1,329 high.
The move is technical, (falling out of the symmetrical hourly triangle), and bulls have buckled, fed with positive sentiment from media reporting on the progress that trade talks between the US and China have made, so far.
Sterling’s rally sent the DXY lower yesterday while Powell’s testimony yesterday and today have offered little new insights for precious metal markets. Also, the escalation in Indo-Pak tensions, along with Michael Cohen’s testimony today has failed to spark much in the way of equity volatility nor any subsequent haven bids in gold.
Stocks shrug off political events
Lighthizer was appearing before the House Ways and Means Committee on U.S.-China trade to provide more insight into the progress of negotiations between the world’s two largest economies, but despite a word of caution, markets took the event in their stride, with some downside in the benchmarks that were picked up as a buying opportunity in the same breath – turning positive for the day so far.
“The next upside trigger for gold stands in the $1,338/oz region, which is within range, but we do not expect a material break above this level until the US fiscal stimulus impact begins to wane and US data turns over,” analysts at TD Securities argued.
Gold TA
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Gold Technical Analysis: Yellow Metal bears looking at $1,314.00/oz
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