- In spite of fresh US Dollar weakening, gold prices maintain advances.
- The recent rebound in US Treasury bond rates has put a ceiling on the increase in gold prices.
- the Purchasing Manager’s Index on a worldwide scale for new cues
- For a new upswing to begin, the price of gold must overcome the $1,942 barrier.
The gold price is maintaining its recent surge to near nine-month highs, as bulls ponder the next move. The gold price has been stronger so far this Tuesday, following a day of excellent two-way activity. In the middle of the US Federal Reserve’s (Fed) ‘blackout period’ and China’s Lunar New Year festivities, attention is returning to the basics.
As a result, preliminary Eurozone and US S&P Global Manufacturing and Services Purchasing Manager’s Indexes. The business surveys will almost certainly reveal indications about the status of the global economy, which might have a substantial influence on forecasts of a probable recession. If PMI numbers from the eurozone and the United States indicate an increased likelihood of a worldwide recession, investors will be concerned might flee to the safe-haven US Dollar, causing a significant drop in the price of gold from higher levels.
Gold Technical Analysis
The technical picture for gold remains unaltered, as bulls continue to seek acceptance over the top border of a rising wedge formation, which is presently aligned around $1,942.
On a daily candlestick closing above the psychological level of $1.950, a further upsurge toward that level cannot be ruled out. The 14-day Relative Strength Index (RSI) is flatlined slightly above overbought territory, supporting the bullish outlook.
On the other hand, for Gold bulls, the bottom border of the wedge, presently at $1,923, holds the key. A prolonged decline might trigger a new decline near the January 18 low of $1,897.
However, the prior day’s the technical picture for the gold price remains intact, as Gold bulls continue to seek acceptance over the upper border of a rising low at $1,911, and the $1,900 round figure may provide some temporary relief to Gold purchasers.
