This morning, gold (xau/usd)is tracking down due to the stronger USD brought on by an accumulation of rather hawkish remarks from Fed spokespeople. Even though some said the future interest rate hikes would be moderate, the expectation is still high, with the June 2020 maximum rate projected to be just over 5%.
A recent increase in COVID instances in some places has immediately revived the threat of further prohibitions, despite recent optimism regarding an easing of China’s COVID restrictions. China is currently the biggest gold consumer in the world, and uncertainty over COVID regulations is expected to dampen demand projections, making spot gold more susceptible to further declines.
Since there aren’t any significant market-moving news today, attention will turn to Wednesday’s string of significant events, which are included in the economic schedule below. The FOMC minutes will feature prominently tomorrow, along with a lineup of speakers from the Fed who could contribute to the recent hawkish language that has the potential to keep gold prices low.
Technical Landscape
The price movement of gold on a daily basis is in keeping with the lately overbought Relative Strength Index, with prices declining (RSI). In terms of closing either above or below the psychological 1750 barrier, the close of today’s daily candlestick will be significant for short-term directional indication. It is more likely that successive support zones will be challenged first because fundamentals appear to be biased in favor of additional dollar strength.
Simple Moving Averages – Daily
|
Name |
MA5 |
MA10 |
MA20 |
MA50 |
MA100 |
MA200 |
|
Gold |
1758.45 |
1758.28 |
1709.83 |
1686.33 |
1715.78 |
1803.26 |
Resistance levels:
1750.00
1767.19
Support levels:
1735.10
1729.46
