Gold Sticks to $2,000 on USD Comeback

[ad_1]

Gold has been showing resilience since November, when it made a strong bullish reversal, as the USD turned weaker on softer FED rhetoric. The FED delivered the last rate hike for all we know, which sent the USD lower initially, but the USD has reversed back up since then, while Gold has been showing signs of weakness.

Although, Gold is holding better than other assets in the last two days of the week. The price reversed back to $2,000 this week and ended the last trading session in a similar fashion to last week, although the price held above this level.

On Friday, XAU/USD experienced a slight decline of around 0.2%, closing the week to $2010, marking its third consecutive session of retreat. This decline can be attributed to the rally in U.S. Treasury rates which strengthened the USD in the forex market However, the losses in Gold were relatively limited, indicating that bullish investors are not yet willing to exit their long positions as they are doing in long positions on other assets which were rallying against the USD, despite the Gold’s subdued performance throughout the week.

Another factor that goes in favour of Gold buyers is the fact that the 20 SMA (gray) held as support on the daily chart. This moving average held as support at the end of last week and it held again on Friday. But, buyers still don’t seem confident to push too far above, so we will follow the price action early this week and see if sellers can break below the 20 SMA which would be a bearish signal.

GOLD



[ad_2]

Source link

Post Author: admin

Leave a Reply

Your email address will not be published. Required fields are marked *