- Gold is over half a percent lower despite risk sentiment turning sour.
- The US dollar has been on of Thursday’s biggest winner capping gold’s progress.
Gold 1-hour chart
Gold had been pushing higher in the session as a strong bout of risk aversion was noted on Thursday. The progress was blocked at the USD 1745.12 per troy ounce, a level which has been a strong resistance recently.
The move lower has now stalled at the 55 Exponential Moving Average marked in blue. Now there is a consolidation zone forming and the USD 1720.00 area could be a support level overnight in the Asian session.
The indicators are looking bearish with the Relative Strength Index dipping below the mid-line. The MACD histogram is firmly in the red while the signal lines look like they are crossing to the downside.
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Gold daily chart
The daily chart shows the overall target for the bulls. USD 1765.38 per troy ounce is the key multi-year high that the market could try to test. If the hourly resistance breaks then there is the possibility that the price might just go on another bull run. For now, the chart below shows the market is stuck between USD 1621.73 and the aforementioned high of USD 1765.38.
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Additional levels
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