Gold failed to capitalize on the gains it has made and continued to flirt around the $1,800 mark.

Gold started the day on the right foot but could not keep the momentum, capitalizing on the negative sentiments surrounding USD and ended up loitering around the $1,800 mark just like it did in the last week. Earlier in the day, the yellow metal had touched the $1,810 level during European trading hours. This failure of Gold to carry on the momentum is pointing towards a continued disinterest among investors and fear of another pullback.

Continued risk-off sentiment may help gold move higher; however, any lasting liquidation will strengthen the USD and might put a cap on the gains made by gold. In that process, if the price of gold closes below the $1,800 level, then that will trigger a sell off by traders which will pull the price further down to $1,790.

In short, gold is under pressure and all eyes are on today’s Federal Open Market Committee (FOMC) meeting. Look at the chart below:

If it cannot maintain the $1800 level, the price may fall down to $1,787. On the other hand, if bulls put up a good performance, then gold can reach even up to the comfortable level of $1,824.

Source: https://www.axiory.com/technical-analysis/gains-seen-in-the-price-of-gold-slip

Share.

About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

Comments are closed.