Gold Prices Fall as Dollar Gains, Stocks Rebound


Gold prices fell $7.06 an ounce on Tuesday as a rally in the dollar put downward pressure on gold. A rebound in the U.S. stock market also dented safe-haven demand for gold. Global stock markets were mostly higher yesterday. Traders are now awaiting Friday’s non-farm payrolls report, which is the most important U.S. data point of the week.

The short-term charts are bearish at the moment, with the market is trading below the Ichimoku clouds on the H4 and the H1 charts. In addition, the Tenkan-sen (nine-period moving average, red line) and the Kijun-sen (twenty six-period moving average, green line) are negatively aligned on both charts. XAU/USD is in the process of testing the support in the 1220.50-1219.50 zone. If this support gives way, prices will probably head lower towards the 1231/1 area, where the daily Kijun-sen resides. The bears have to capture this strategic camp to make an assault on 1208.

XAUUSD Daily

The bulls, on the other hand, have to lift prices above 1225 to make a run for the 1232/29 area occupied by the 4-hourly Ichimoku cloud. If this resistance is broken, XAU/USD may revisit the next barrier sitting at 1235. Beyond there the 1240 level stands out as a strong technical resistance. The bulls have to produce a daily close above 1240 to challenge 1252/48.

XAUUSD h4



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